The review, planned to be launched in May, will be undertaken by a cross-departmental ministerial group advised by the NCVO’s director of public policy Campbell Robb. The review is expected to involve large scale consultation with the sector, helping to shape the priorities of governmental departments.

The Chancellor also announced that an Office of Charity and Third Sector Finance would be established, working across the Home Office, Department for Trade and Industry and HMRC charities unit.

NCVO’s chief executive Stuart Etherington welcomed the announcement of the new office, saying it demonstrated the government’s commitment to the sector and acknowledged the role the sector played in society. “In our General Election Manifesto last year, NCVO called for a ministerial position with responsibility for the sector, and the establishment of a ‘Third Sector Office’ in the Treasury goes a considerable way towards meeting this,” he said. “It is vital that it is coordinated in a strategic, cross-departmental way.”

Commenting on the planned review, chief executive of Turning Point, Lord Victor Adebowale, said: “The time has come for the voluntary sector to step up to the plate. It is up to social enterprises to respond positively to the challenge of providing services to the public.”