A new campaign is calling for a halt to the 'dangerous decline' in grants given by public bodies to charities and community groups.
Its organisers say public sector grants fell from a total of £6bn in 2003 to £2.2bn in 2013 and are likely to have fallen further since then.
They say if the decline continues at the current rate, grants will have 'all but disappeared' by the next general election and will be largely replaced by short-term, inflexible and bureaucratic contracts.
The campaign, Grants for Good, will be run by Directory for Social Change, Charity Finance Group, Children England and Lloyds Bank Foundation for England and Wales,
Directory for Social Change chief executive Debra Allcock-Tyler said: 'Grants are absolutely essential for charities and community groups because they can put people at the very centre of projects and services, allowing them to solve problems in their community.
'When local councils slash grants or dump them for hugely restrictive contracts they are simply shooting themselves in the foot.'
