Charity Finance Group comments on Chancellor's Spending Review

26th June 2013

CFG CEO Caron Bradshaw commented:

"The spending review signifies another raft of cuts to government spending, with serious implications for those most vulnerable in society.   The welfare cap in particular is a retrograde step and will reduce assistance for  those who need it most. With public services already  cut to the bone, many people are turning to charities as their only form of support. Today’s announcements mean that the increases in demand for services that charities have seen in recent years are certain  to continue, while further cuts to local government suggest statutory support for charities is likely to continue to decline.  This may be viewed as a ‘model of lean government’, but charities are likely see more beneficiaries on their doorstep with even greater needs  at the same time as further reductions in their funding. However, the fact that the commitment to spend 0.7% of GDP on international development has been reaffirmed is a welcome exception.

"We’re pleased that the Charity Research Support Fund will continue, and that the government will consider ways to make it easier for these organisations to claim Gift Aid. While HMRC face further cuts of 5% to their budget,  we hope that it can continue to smooth the transition as far as is possible to Charities Online – we know from engagement with members that implementation has been rocky to date.

"A further cut to the  Charity Commission’s budget is a worrying sign – we hope that it will not force the Commission to consider alternative funding options such as top slicing Gift Aid or charging for registration;  neither of which fit with our vision for accessible and enforceable regulation of the sector.”

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