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September's mini-budget: Good, bad, ugly

CFG comments on the new government's mini-budget statement delivered by Chancellor Kwasi Kwarteng.

Charity Finance Group comments:

“Today’s fiscal event has marked a real shift in tone, one that is rather worrying and can be summed up as the good, the bad and the ugly.

“Although there were very few policies directly relevant to the operation of charities and social change organisations in today’s announcements, one piece of good news for the sector is confirmation that the four-year Gift Aid transitional relief will still apply from April 2023. And with nearly one million people employed in the charity sector a reduction in employers’ national insurance will be welcomed by many.

“The bad news is the announcements on tax that will make little difference to ordinary people’s take-home income and will reduce government revenue. And the ugly was the decision to scrap the bankers’ bonus cap and the top rate of income tax whilst simultaneously signalling that those on benefits will be penalised if they cannot secure better jobs.

“Many more workers, and those doing all they can to seek employment, are edging ever closer to the poverty line. Placing faith in trickle-down economics, when for many it is clear this approach simple widens disparities and inequality, is a risky strategy.

“CFG will remain focused on what we can do to influence and work with civil servants to ensure rising inequality as a result of first the pandemic and now the cost of living crisis, does not leave the most vulnerable in society without a safety net. The charity sector and social change organisations remain braced for an increase in demand for their services this winter.”


Read CFG's full analysis of the mini budget.

Read Chancellor Kwasi Kwarteng's full statement.

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