Nearly three-quarters of local infrastructure organisations expect their financial position to worsen over the next 12 months, a Navca survey has indicated.
According to the umbrella body, 22 out of 30 organisations that responded to a question about their organisation’s finances said they thought they would get worse over the next year. Five said they thought they would improve and three said they would stay the same.
Navca’s survey found that 22 out of 31 responding organisations said they thought the financial position of their local voluntary sector would get worse over the next year. Two said they thought it would get better and seven expected it to remain the same.
Navca has put together a panel of organisations that it said was representative of its membership and will question them quarterly on a range of subjects, including collaboration and job losses.
The first poll found that 9 out of 31 organisations that responded said they planned to reduce the size of their workforce over the next three months. Two said they planned to increase it and 20 said they expected it to remain unchanged.
Navca research carried out last year predicted that 26,000 jobs at local charities would be lost in 2011/12.
Eighteen of the 31 organisations polled for the latest research said they expected to collaborate more with other infrastructure organisations over the next year.
Joe Irvin, chief executive of Navca, said a lot of the gloomy financial outlook was down to local authorities cutting funding to voluntary groups.
"Others are saying this because of National Lottery funding, such as the Transforming Local Infrastructure budget, coming to an end next year," he said. "We are concerned by this and have lobbied government about it because Navca members are bearing the brunt of local government cuts."
Irvin said the expected increase in collaboration was again motivated by financial insecurity:"We have seen an increase in mergers in the last few years and that is often linked to funding."