What can we expect from policy-makers in the coming months? CFG's Policy Officer, Isaac Bristol, looks ahead to what could be a blustery season for the Government.
2026 has already proven to be both eventful and unpredictable. Within charity finance, the implementation of SORP 2026 has now begun, introducing a host of new accounting standards. You can read more here if you are still unsure about what they are: SORP 2026 Guide.
While uncertainty remains a defining feature of the current policy landscape, it is always best to (at least attempt to) be prepared for what lies ahead. Below are some of the key macro-political developments on the horizon that will impact our sector.
March - Spring Statement
As part of the Autumn Budget, the Chancellor confirmed the move to a single formal fiscal assessment each year by the Office for Budget Responsibility (OBR). For context, while the OBR will still publish an “interim update on the economy and public finances” in March, it will importantly not assess the government’s performance against its fiscal mandate. In practical terms, this means no further discussion of fiscal headroom until the Autumn.
Given the leaks and chaos surrounding the last Budget, alongside the ever-mounting pressures to stay within the fiscal rules, it is perhaps unsurprising that the Chancellor has looked to make this change.
With this in mind, there is growing expectation that the Spring Statement will be purposefully downplayed. Its timing is notable: held especially early, following a late Autumn Budget, and scheduled for a Tuesday rather than the usual Wednesday after PMQ’s. As a result, it remains unclear how much of a press moment this will be - it is even uncertain whether the statement will be delivered by the Chancellor herself.
For more on the Spring Statement, and a broader update on where policy affecting the sector currently stands and is heading, members are encouraged to join the Policy Update on 10 March: https://cfg.org.uk/events_and_training/cspumar26
April – Rise in NLW & NMW
Looking ahead to April, both the National Living Wage and National Minimum Wage will increase, to £12.71 (+4.1%) and £10.85 (+8.5%) respectively. Rising costs, reduced income and growing demand for services are continuing to place significant strain on charities across the UK.
May – Local elections and King's Speech
The local elections in May represent the most important political moment on the immediate horizon. Taking place across much of England and the devolved parliaments (excluding Northern Ireland) the results are expected to carry considerable weight.
The 2023 local elections proved highly consequential, helping to set the political direction that followed, and Labour, with Keir Starmer at the forefront, will be keen to ensure history does not repeat itself.
These elections will not only decide the direction of the government, but potentially who is leading it. The outcomes will have clear implications for policy priorities in the months that follow.
The King’s Speech has been announced for shortly after the local elections, with provisional dates pencilled in for 12–13 May – just one week after polling day. Some believe this narrow window is deliberate.
As reported by a BBC government source:
“It will be much harder for somebody to challenge the PM and say we need to go in a different direction when the King is about to come to parliament to announce what we’re doing for the next year.”
This year’s King’s Speech is not expected to be as expansive as the last, but it will nevertheless set the legislative tone for the year ahead and will be closely watched by us and the sector.
Taken together, the months ahead point to significant change and uncertainty in the financial environment for charities. Staying informed and engaged will be critical. At CFG we will continue to monitor developments closely, represent the sector’s interests, and engage with government!
Did you miss our last policy update? Read it here