ACEVO described the budget as "the best third sector budget for a long time," although the body did express disappointment at no support for charities with funds in Icelandic banks.

ACEVO’s chief executive Stephen Bubb said: “This is the best third sector budget for a long time. The Government now needs to work with us on implementation to make the most of the opportunities and to minimise the potential damage of forthcoming efficiency savings.

"We were surprised and disappointed not to see support for charities with funds in Icelandic banks. Many of them, like other third sector organisations dealing with increased demand for their services and with their resources under threat, will now be looking to the highly welcome new £20 million Hardship Loan Fund for charities dealing with increased demand for their services.

"We are delighted that an ACEVO report to James Purnell, the Secretary of State for Work and Pensions has inspired a job creation scheme, extra training, and more money for existing welfare-to-work programmes – with the third sector expected to play a major role, particularly through the job creation scheme, whose design we will continue to discuss with DWP over the coming weeks."

James Purnell added: “Without the work of ACEVO this announcement would not have been possible. In particular, the paper Stephen Bubb prepared demonstrated that the voluntary sector has the ideas to create employment for people out of work. This budget provides the funding that will enable the voluntary sector to develop local, useful jobs for the young unemployed."

On other aspects of the budget Bubb said: “We are delighted to see that our calls for a ‘Green New Deal’ are also reflected in the new money for energy efficiency schemes. Equally welcome are the commitment to draw up substantive proposals for a Social Investment Bank, proposed by an ACEVO taskforce in February this year, and the commitment to exploring reform of Gift Aid further.

"Now it is action time: we will need to work with Government on the jobs and energy packages, the Social Investment Bank and Gift Aid, and on ensuring that efficiency savings are just that – and not cuts to vital third sector services.”