Scottish charities are �facing a �devastating� cut in lottery support next year as funds are diverted to the London Olympics, a new report by a leading pressure group has warned.

Scottish charities are facing a "devastating" cut in lottery support next year as funds are diverted to the London Olympics, a new report by a leading pressure group has warned.

The 70% decline in lottery cash forecast by the Scottish Council for Voluntary Organisations (SCVO) has been condemned as completely unacceptable.

Funding available from the Big Lottery Fund (BLF) is predicted to fall from around £85m a year for the past three years to just less than £24m in 2009-10, due to the diversion of lottery funds to the 2012 Olympic Games in London, SCVO said.

Although a reduction in funding had been predicted, there was widespread shock at the scale of decline among the voluntary sector.

The umbrella organisation said it is concerned that, as demand for charities' services grows during the economic downturn, the funding may no longer be available to support these services.

Lucy McTernan, acting chief executive of SCVO, said: "SCVO has been campaigning for months against the diversion of lottery funds to the Olympics as it has long been clear that the result would be significant cuts in the funds available for good causes.

"The scale of the cuts is truly devastating for the voluntary sector as many charities, voluntary organisations and community projects in Scotland depend on such funding for their survival.

SCVO calculated its figures on UK-wide data released last week as BLF launched a consultation about its spending priorities.

Ms McTernan added: "The Big Lottery Fund must use the opportunity of their consultation to ensure that 100% of funding goes to the voluntary sector in future and that this money is in addition to government funding.

"We are also urging the UK Government to compensate Scottish charities for the loss of the lottery funding that was diverted to pay for the Olympics."

The potential impact should not be underestimated, the SCVO said. In the year up to January 2007, more than £14m BLF charity money was distributed in Scotland.

SCVO had £750,000 for a number of projects, while other grants ranged from a £126,971 award to help run Revive Multiple Sclerosis Support in Glasgow, to a £190,159 award to Save The Children Fund to help young people in the east end of the city, to Disability Shetland's £32,309 to help 30 disabled young people in the islands.

Bowel Cancer UK highlighted the importance of such funding, revealing that its £179,349 grant for a Lothians awareness campaign would fully fund the recruitment and salary of a member of staff, training, travel, documents and organisational overheads, and part-fund IT and display equipment.

The Scottish Government described the figures as worrying, but Westminster pointed to benefits the economy would receive from the games, with Hampden Park hosting football and 29 locations across Scotland included in an official guide for training facilities for foreign teams.

But SNP culture, media and sport spokesman Pete Wishart MP said: "A 70% diversion of funds from Scottish organisations to build the London Olympic village amounts to more than £150m - a massive cut for good causes across Scotland.

"This situation is entirely unsustainable. Throughout Scotland, we will soon hear stories of lottery-supported good causes having difficulties and perhaps being forced to close down as a result of reduced funding.