CFDG cautiously welcome Transition Fund

20th October 2010

Charity Finance Directors’ Group has responded to today’s announcements from the spending review, outlined by the Chancellor George Osborne in a speech to the House of Commons.

Caron Bradshaw, CEO, CFDG says “today’s announcements were always only going to be the start - how these cuts will play out for the sector will become clear over the coming months as the cuts are implemented.”

There has been a major focus on reducing the administrative costs across Government, with George Osborne doubling his expected £3bn savings.  Of significance to the charity sector are the cuts to the Department for Culture Media and Sport (-24%), Local Government (-27%), and reform of welfare and housing.   

The announcements included a proposal for a Transition Fund of around £100 million to support the voluntary and community sector organisations that are most affected in the short term by public spending reductions.  Finance professionals will need to focus on demonstrating the adverse impacts of the cuts on their ability to deliver services in order to take advantage of the fund. 

Caron Bradshaw added “the Transition Fund offers some good news and is something CFDG has been calling for.  What we need now, is for it to be smartly applied so that those who most need it to adapt and change to new funding environment are given support to do so.  It must not be used as a get out for local councils, who will see their budgets cut by 28%, to make the easiest rather than the most appropriate cuts.”

- Ends -

Notes to Editors

1. CFDG is the charity that promotes best practice in charity finance management, supporting finance managers with conferences, training and a wealth of web-based information.  CFDG is also active in the policy arena, working on issues that affect charity finances.

2. 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 £17.4 billion in charity income per year, around half of the sector’s income.

3. If you would like to discuss any of these issues further please contact or on 0207 2508347.

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