This short paper from nef (the new economics foundation), supported by the Barrow Cadbury Trust, presents the findings of research investigating perceptions of the impact of the cuts on small and medium sized third sector organisations in Birmingham. It is based on a consultative workshop held in February 2012, and four in-depth interviews with members of the Habits of Solidarity network. The findings presented in the report contribute to nef’s wider research on the effects of the New Austerity and the Big Society.