CFDG responds to the Emergency Budget 2010

22nd June 2010

Today’s budget was always going to contain some painful consequences for the sector.  Whilst recognising that times will be increasingly tough for the majority there are some interesting challenges within the budget.  Much of Nick Hurd’s candid thoughts shared with members, at the recent Charity Finance Directors’ Group (CFDG) post-election special meeting, were echoed in the details of the emergency budget; with some clear invitations to the sector to engage.

CFDG welcomes the delay in implementing the VAT increase.  “While the increase in VAT is worrying for the sector, the delay will allow us time to engage with Government on minimising the impact on the sector.”  Caron Bradshaw, CEO says.  Furthermore, we are pleased that the Government has reconfirmed the March budget commitment to consider options to remove the VAT burden on charities wishing to share services. 

At a local level our members will face pressure as local council budgets are squeezed. While not all of our members will be directly impacted by this, it will have a flow on effect on the entire sector.  We will therefore, make it a priority to help our members focus on demonstrating their impact and become more efficient in their operations.

We also welcome the consultation on the new approach to tax policy making.  CFDG Policy Manager, Megan McInally stated, “Such an approach is needed to avoid a repeat of the unintended consequences of the ‘fit and proper’ persons test and the substantial donors legislation.  We will be actively seeking to be part of this consultation.”

We are pleased to see mention of deregulatory measures in today’s Budget.  As Nick Hurd MP outlined to CFDG members last week, reducing the regulatory burden to the sector is a key priority.  CFDG will be seeking active engagement with Government on this issue to achieve the right balance between regulation and risk. 


- Ends -

Notes to Editors:

1.For further information please contact, on 020 7250 8347.

2.The Charity Finance Directors' Group was set up in 1987 and is an umbrella group that specialises in helping charities to manage their finance-related functions.  CFDG’s circa 1700 members are responsible for the finances of charities with a wide variety of income levels. Between them our members manage some £17.35bn in charity income per year.

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