The letter outlined the £1.4bn in increased costs that the sector would see as a result of the ERNICs rise, and asked the Chancellor to consider exempting charities.
In her response, the Chancellor outlined why she could not support an exemption for charities and said she has made 'a number of difficult but necessary decisions on tax, welfare, and spending to fix the public finances, fund public services, and restore economic stability after the situation we inherited from the previous administration.'
CFG, alongside NCVO and ACEVO, have published a joint statement in response to the Chancellor's letter.
'The number one priority for charities is always the people and communities they support. The burden of these increases, with little time to prepare, means there is a need for many organisations to cut or reduce services, and the knock-on impact it will have on individuals, communities and local economies who rely on us will be devastating.
Although this isn’t the news we want, we’re committed to raising the voice of the sector on this issue so that government understands the very real impact it is having, and where possible will seek to minimise the impact of these changes.
While we do that, it’s important that we commit to developing a stronger partnership between government and the sector in the future. In her letter, the Chancellor recognised our role as a trusted and independent partner.
To strengthen that relationship, it’s vital the sector shares its views on the Covenant Framework, as this will help us agree the basis of our collective future relationship and ensure the sector included in discussions around significant changes that will affect both charities and the people and causes we exist to serve.
Part of partnership is having difficult conversations, and it’s important that we, as an independent sector, continue to challenge where challenge is needed.'
Read the full statement
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