The government has been urged to ensure “robust mechanisms” for voluntary sector engagement with local authorities as part of its devolution plans.

The Directory of Social Change has submitted a range of suggestions as the government prepares to roll out the second phase of its spending review in June.

Suggestions on charity regulation, funding and taxation have been put forward by the training and publishing charity.

These include the government ensuring that voluntary sector engagement with local authorities is covered by “robust mechanisms”, the DSC said.

“This helps provide value for money by ensuring that local governments understand which organisations are working in their area, what communities need, how they can reach into parts of the community that need support, and how to design effective services that provide value for money,” it said.

The charity is also calling for the government to provide “sufficient budgetary increases” for local authorities to allow them to uplift contracts and grants for VCSE suppliers in line with inflation, as part of the spending review.

The DSC said it had contributed to a joint submission filed by the Civil Society Group, but wanted to go further in areas important to the sector.

“We offer this submission to the spending review because we believe that the activities of charities and other voluntary organisations are crucial to all of the government’s missions and to the overall social welfare and economic productivity of the whole country,” the charity said.

“Therefore, it’s vital for the government to take their needs and value seriously when making public policy and spending decisions.”

The DSC has also urged the government to reverse the 2013 amendment to the Companies Act, which eliminated the requirement for companies to report charitable donations in their annual reports

“Restoring mandatory reporting of corporate charitable giving would support better data and transparency, and encourage companies to increase their philanthropic contributions to benefit people and communities,” the charity said.