While there has been some reassurance from Government, the overall picture suggests that, as it currently stands, Brexit will have a negative impact for charities.
In order to deliver a better outcome, CFG is calling for a deal in which:
- The UK has complete freedom to change VAT rules including the creation of new zero-rates, options to tax and a comprehensive rebate mechanism
- Services are funded to the same level that they are currently funded by the EU, with improvements in delivery of funding
- The UK is still able to flexibly pool resources to access EU funds in key areas such as international aid
- State aid is reformed so that it focuses on enforcing competition in real markets instead of tying up charities and social enterprises with red tape in broken or non-functioning markets
- There is greater flexibility on public procurement, so that more grants and contracts are awarded on the full social, economic and environmental value rather than just on cost
- There is more flexibility in the immigration system, so that charities can continue to hire workers to deliver their charitable objectives
Caron Bradshaw, Chief Executive of Charity Finance Group said: “Based on what we know so far, there is a very high risk that charities are going to be saddled with all the costs of Brexit, and none of the potential benefits. There is a huge risk that instead of healing the divisions in society for those who feel left behind, the public’s fears will be proven right - that Brexit is about business and the wealthy and not about ordinary people and the disadvantaged.
“It’s not for CFG to say whether Government should continue with commitments to leave the EU but it needs to take action now if the UK is to avoid Brexit being a disaster for charities. There is still time - but Government is running out of road. With a no-deal scenario looking increasingly likely, we’re deeply concerned that charities and their beneficiaries won’t benefit in any way from Brexit.” she added.
Notes to Editors
- Download a full copy of the report
- For more information, please contact Richard Sagar, Policy Manager, Charity Finance Group (email@example.com or 07730 231009)
- The purpose of Charity Finance Group (CFG) is to develop a financially-confident, dynamic and trustworthy charity sector. Our 1,400 organisational members include charity finance professionals, who between them manage £21bn of funds. We work with our members to: inspire and nurture leadership; drive up standards; create a better and fairer operating environment; identify best practice and share knowledge.
Ultimately, we strive to equip charities with the knowledge, skills and conditions they need to ensure that every pound works that bit harder, achieving a greater impact for even more beneficiaries.
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