Charities have urged the government to work with the voluntary sector as it reforms public services after the Spring Statement yesterday. 

Rachel Reeves, the Chancellor of the Exchequer, told the House of Commons that the government planned to reduce spending in areas including the welfare budget and local government. 

She also confirmed plans announced last month to further reduce the overseas aid budget to boost spending on defence. 

Sarah Elliott, chief executive of the National Council for Voluntary Organisations, said it was clear that fundamental reform of public services was needed, which meant difficult decisions for the Chancellor. 

“The Spring Statement is a reflection of that,” she said. 

“Many charities have expressed concerns about the impact changes to the benefits system could have on communities, which will lead to increased demand on an already overstretched sector.”

Elliott urged the government to work closely with the voluntary sector to ensure reforms would result in better long-term outcomes “and not the exacerbation of current challenges”. 

James Somerville, policy manager at the charity think tank NPC, also called for the government to work with civil society and funders. 

He said the statement painted a “mixed picture for the people that charities support”.

Positive forecasts for economic growth and real household disposable income were coupled with sluggish short-term growth and freezes to Universal Credit, said Somerville. 

“Promising predictions will not ease the pressures on people who are struggling today, and the government should leverage the expertise and capital of the impact sector to help the people and communities that need support,” he said. 

“The increasingly urgent need for a joint plan between government, civil society and funders to make this a reality is underlined by today’s statement.”

Sarah Champion, chair of the House of Commons International Development Committee, called for the government to pause cuts to the overseas aid budget, after the Chancellor confirmed the amounts that will be redirected to defence over the next three years. 

Documents published by the Treasury show the government plans to cut £500m from the aid budget in this financial year, then £4.8bn in 2026/27 and £6.5bn in 2027/28.

She said the statement confirmed the government was not only committed to reducing aid but that it would do so rapidly.

“Cutting aid to the world’s poorest should not be taken lightly,” said Champion. 

“If the government is committed to this change, I urge it to take more time to consider the full ramifications of dangerously hasty cuts.”

Romilly Greenhill, chief executive of the NGO umbrella body Bond, said the “reckless and cruel” decision to further reduce the aid budget would affect millions of people and put more than 600,000 lives at risk. 

“By choosing to rush through these cuts, the UK is turning its back on the poorest and most marginalised people globally,” she said. 

“Instead of learning from past mistakes, the government is following in the previous government’s footsteps in making sudden and damaging reductions to UK aid and harming its reputation as a reliable partner. 

“We urge the government to mitigate the impact of the cuts by maintaining UK aid at 0.5 per cent of gross national income over the next two years and dramatically reduce the amount of UK aid spent on asylum accommodation in the UK.

“This would help prevent a funding cliff-edge and protect vital programmes where it is needed most.”