Tax and VAT Pensions Governance, legal and compliance Gift Aid Funding Economy and policy

Spring budget fails to address critical issues

We take a look at the government's spring budget announcements and what they'll mean for sector.

Chancellor holds up the red box on budget day

This time last year, the Chancellor acknowledged the vital work of charities and community groups. This year there was, unfortunately, no such recognition.

On Wednesday 6 March, the Chancellor, Jeremy Hunt, set out a raft of measures in his spring budget, many of which had already been trailed in the media.

Richard Sagar, Head of Policy at CFG, commented:

"We welcome the news on funding for creative industries, but in the context of local government funding collapse, it’s hard to see how this will help the arts sector at the grassroots level.

"We also welcome the government’s firm commitment to ensure charities can continue to claim Gift Aid on membership subscriptions."

CFG is working with relevant departments and charity members to ensure that the solution proposed is practical and does not provide additional work for charities.

Richard continues: "Concerns remain about the DMCC Bill, but we will engage with government to address concerns about a ‘cooling off period’ and work to ensure that the government also creates guidance and support for affected charities.

"Changes to the VAT threshold and new announcements on pensions will be of interest to the sector and we will work with partners to determine exactly what they mean in due course.

"Today’s tax cut announcements will be welcomed by average earners who will save around £450 per year but will make little difference to those on low incomes. And although there are some positive short-term measures, such as extending the Household Support Fund, there was no pledge to help the most vulnerable with an ‘Essentials Guarantee’.

"Once again, we’re disappointed that there is a lack of clarity on how the government will put local authorities on a sustainable financial footing. The third sector is sounding the alarm, and it remains unheard.

"On the whole, there were a few positives, but a lot of crucial issues remain unaddressed and the announcements will do little to increase confidence and certainty."

CFG will continue to analyse the finer details to establish what it means for the sector and we’ll be sharing a fuller briefing shortly.


We to find out more? Read our full budget analysis.

Read our letter to the Chancellor ahead of the budget.


« Back to all news