The government’s local government reorganisation agenda leaves charities facing the risk of funding cuts and upheaval to contracts with councils.

Over the next three years the government is to move away from a two-tier council set up of district and county councils to create larger unitary local authorities across England.

In addition, strategic combined authorities will be created for all areas within the next four years.

Charity sector body National Association for Voluntary and Community Action (NAVCA) has warned that charities need to ensure they “prepare for major shifts in governance and geography, especially if they are used to working with district or county councils”.

Reorganisation will also leave already cash-strapped councils facing further financial challenges that could put funding for charity contracts and grants at risk, it warns.

“As decisions move to a higher level, strategies will be needed to maintain community influence and rebuild relationships,” said NAVCA.

“With local government already under financial pressure, there is a real risk of funding cuts and disruptions to procurement.

“Adapting to new structures will take time and ensuring VCSE voices are heard will be crucial in shaping the future.”

NAVCA is to work with another rural community organisation Action with Communities in Rural England (ACRE) to “identify and respond to the risks and opportunities”.

“We are concerned that these new authorities could consolidate power in ways that marginalise local voluntary action and disrupt key relationships, especially with health systems, public health, and local resilience,” they said.

They will also lobby key government departments, including the Ministry of Housing, Communities and Local Government (MHCLG), to ensure that community connections and the charity sector “are a core part of the changes”.

Another priority is to “mitigate the risks of further funding reductions associated with new budgets and commissioning arrangements”.

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