UNITED RESPONSE: Budget reaches out to struggling charities

Thursday, 24 March 2011 12:00 AM

As the Government had warned in advance, the Budget didn't include major tax rises or further spending cuts.

It did confirm the ongoing economic difficulties the country faces - with the forecast for future growth revised downwards - but also contained some encouraging moves to help charities facing difficult times.?

Su Sayer OBE, United Response's chief executive, said, "George Osborne described today's Budget as "a big help for the Big Society". Given the gloomy economic outlook, the voluntary sector was certainly hoping for good news from the Budget, and it came in a series of measures designed to benefit charities and increase giving from the wealthier members of society.

"The discount on inheritance tax on estates where 10% or more is left to a charity recognises the importance of the voluntary sector in the UK, and should incentivise large donations. Even more encouraging was the announcement that charities will be allowed to claim Gift Aid on up to £5,000 of small donations per year without the need for Gift Aid declarations, This will boost fundraising and reduce bureaucracy, which will be particularly crucial for small community organisations who may be struggling.

"Indeed, many charities are likely to find the coming year difficult, due to reduced funding from local authorities and the fact that many ordinary members of the public are facing frozen wages and rising inflation. We would like to see the Government do even more to help the voluntary sector through these difficult times. One thing which needs urgent attention is the VAT charged on services shared by charities: if this obstacle was removed it would be a lot easier for the third sector to collaborate and be more efficient in their administration, allowing us to concentrate on providing frontline services that really make an impact on people's lives.

?"We were also pleased that immediately prior to the Budget David Cameron confirmed that the Government are reconsidering their previous commitment to removing the mobility component of the Disability Living Allowance from people living in residential care homes, a move that would have left thousands socially isolated. The Government must ensure that this does not happen as it presses ahead with welfare reforms."

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