The Financial Times has joined the list of newspapers to attack the sector, calling on the government to force charities to merge and to limit the funding an individual organisation can receive.

In an editorial published earlier this week, entitled "Britain's charities need better oversight", the FT criticised “lax practices that have emerged threaten to taint the sector as a whole” and singled out trustees as failing to do their jobs.

It called for government action to “rationalise a highly inefficient sector” and said that it is “vital that better governance is embedded in charities as swiftly as possible”.

The newspaper suggested the government should withhold funds from charities that do not adopt more efficient practices.

“Firstly, many of Britain’s charities wastefully duplicate each others’ activities,” the FT says. “There are for instance, no less that 581 charities seeking to find cures for cancer. The government should consider what it can do to rationalise a highly inefficient sector.

“Secondly, more should be done to foster better oversight. The state can for instance use its buying power to force better practices. Charitable suppliers should not be allowed to depend too much on public funds. They should have a plan to sustain themselves should contracts ever be withdrawn.

“Lastly there is a need for tougher regulation. This must be proportionate. Diverting donors’ cash to meet heavy regulatory costs could erode the giving urge. Many trustees are volunteers giving their time out of a sense of community. One approach might be to hold larger charities — especially those providing public services — to closer public scrutiny. This could involve the regulator issuing notices about infracting bodies, advising donors to beware.”