Reports published by the foundation show that the smallest charities have experienced large cuts to local and central government funding, while the very biggest have seen their income from these sources grow.

Small and medium-sized charities have been the hardest hit by cuts in public funding since the 2008 financial downturn, new research shows.

Two reports published today by the Lloyds Bank Foundation for England and Wales show that charities with annual incomes of between £25,000 and £1m have been the worst affected by reductions in local and central government funding in recent years.

The research shows that between 2008/09 and 2012/13, charities with annual incomes of between £100,000 and £500,000 have lost 44 per cent of their income from local government, while those with incomes of between £500,000 and £1m have lost 40 per cent of that income.

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