Civil society looks to government for a more sustainable footing
As part of the Civil Society Group (CSG), Charity Finance Group (CFG), the UK's leading membership organisation for charity finance professionals, has written to the Chancellor ahead of the Autumn Budget on 30 October 2024.
Signed by 22 charity leaders, including the CEOs of Locality, NCVO, SCVO and CIoF, the group’s letter sets out what it wants to see Labour deliver in its first budget announcements.
The group is calling on Rachel Reeves, Chancellor of the Exchequer, to consider several quick wins – measures that could be implemented in the near-term that are low-cost and impactful.
These include:
- increasing charity tax limits in line with inflation.
- launching a consultation on the introduction of VAT relief on charitable donations and donated goods.
- extending charitable rate relief to wholly owned charity trading subsidiaries.
- confirmation that funding will be provided to continue HMRC’s review of Gift Aid.
- Improve the provision of wealth advice by directing the Financial Conduct Authority to use its powers to make philanthropy training mandatory.
- Provide greater clarity on removing charitable business rates relief for private schools in England.
The group has also called on the Chancellor to adequately fund the Charity Commission for England and Wales, whilst urging the devolved authorities to extend similar support to the Office of the Scottish Charity Regulator (OSCR) and the Charity Commission for Northern Ireland (CCNI).
Alongside these asks, the group has set out a longer-term vision for putting the sector on a more sustainable footing while ‘contributing to the delivery of the government’s missions’.
The letter states: ‘… a rediscovery of the previous Labour government’s ‘invest to save’ approach could deliver more human benefits and lower costs to the Exchequer over the long run. We believe these proposals would contribute to greater sustainability across society and increase the resilience and energy of civil society to make a massive difference.’
The group’s longer-term proposals include:
- the introduction of a protected minimum floor for reductions to Universal Credit Standard Allowance.
- a requirement that would enable public bodies at every level to ensure that grants and contracts meet the true costs of delivering public services.
- the appointment of a philanthropy champion to drive up charitable giving.
Richard Sagar, Head of Policy at CFG, comments:
“This budget submission is civil society’s opportunity to contribute to the new government’s thinking whilst emphasising the value that civil society brings to society and the economy.
“The Chancellor has been clear that the government wants to maintain its fiscal rules and the Civil Society Group’s submission reflects her aim. Our short-terms asks could be implemented for little cost yet could have a major impact on civil society’s ability to provide support for the most vulnerable in society.
“The sector continues to absorb an increasing amount of pressure, from rising inflation and costs, through to decreasing donations and increased demand for services.
“By supporting charities, the government can maximise the impact the sector can have on the government’s mission areas, from health and social care to housing.”
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