Leather told the Public Administration Select Committee last week that she expected the commission's budget to be cut by 5 per cent over the next three years.
"The resources situation is, as for other government administrative departments, very tight," she said. "It's difficult to conceive how we will do everything we're doing in the way we're doing it."
The commission is awaiting the results of the Treasury's Comprehensive Spending Review, expected in the autumn. The review will decide the commission's budget for the next three years. "We expect it to be a 5 per cent cut," Leather told the group of cross-party MPs. However, she declined to name the areas of the commission's work that would be most affected.
Leather's comments came after news that the commission plans to cut staff at three of its four offices by more than 20 per cent by 2010 because of pressure from the Treasury to reduce its expenditure by 5 per cent a year for the next three years (Third Sector Online, 25 June).