MPs Call for Action on VAT and National Insurance

22nd January 2003

A campaign has today been launched by Bob Russell MP to enable charities to get compensation for the Value Added Tax (VAT) they cannot recover and the increased National Insurance contributions they will be facing from April.

Irrecoverable VAT is estimated to cost the charity sector more than £400 million per year, whilst the impact of the increases in National Insurance are estimated to cost the sector more than £50 million per year.

Mr Russell, Liberal Democrat MP for Colchester has tabled a Parliamentary Early Day Motion (EDM) calling on the Government "to introduce measures to reduce or remove this crippling financial burden on charities".

Bob Russell MP said "The more services charities provide, the more they lose in irrecoverable VAT. The forthcoming increase in national insurance will put even further pressure on the sector and will make it more difficult for charities to achieve their objectives and meet the governments goals for improvements in public services."

Les Jones OBE, CFDG Deputy Chairman added, "We are delighted that MPs are raising the charity sector concerns about the increasing tax we are facing. We will be encouraging CFDG members to write to their own MP to ask them for their support of this important parliamentary motion."


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