100 MPs Declare their Support for VAT Campaign

7th March 2003

More than 100 MPs have backed a campaign 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.

Bob Russell MP tabled a Parliamentary Early Day Motion (EDM) calling on the Government "to introduce measures to reduce or remove this crippling financial burden on charities", which has now received 100 signatories. The MPs come from a cross-section of the parties and includes over 50 Labour back benchers. A number of front-benchers have also written to the Charity Finance Directors' Group expressing their support.

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.

Shirley Scott, Director of CFDG, said, "We are delighted that so many MPs support our campaign and share our concerns about the increasing taxation the charity sector is facing. We hope that the Government will take note of the support we have received and that this will motivate them to compensate charities for the huge financial loss inflicted by the tax system. CFDG is urging Chancellor of the Exchequer, Gordon Brown MP to take MPs' concerns into account as he prepares for his Budget in April."

The CFDG will be celebrating its 15th Anniversary at a reception on the Terrace of the House of Commons on 19th March 2003. More than 20 MPs, most of whom have signed the EDM, have accepted CFDG's invitation to attend the reception.

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