Council leaders are examining how they will plug the gap, after voluntary organisations warned of an icy economic winter that could hit community services. The LGA has started looking at how to plug the gap in services currently provided by the third sector, if voluntary organisations struggle. LGA third sector policy consultant, Sally Cooke, said: ‘We are aware there will be several sources of charity income which may fall as a result of a recession, and that these are likely to come at a time when demand for services and support may be rising. ‘Local government's response will depend on where the impact is felt. We are looking for examples, where local authorities and third sector organisations are working together to alleviate the worst effects of the economic downturn, which we hope to be published in the new year.' It followed a joint survey from PricewaterhouseCoopers, the Institute of Fundraising and the Charity Finance Directors' Group. It found leading charities were already losing income as a result of a downturn in corporate sponsorship, trusts, legacies and the cancellation of individual standing orders.