22/06/10

By Andrew Holt

Acevo chief executive Stephen Bubb has criticised today's emergency Budget, warning it will have an enormous impact on charities and hit the most vulnerable.

Responding to today’s budget Stephen Bubb, chief executive of Acevo, said: “The scale of the challenge facing charities as a result of this Budget is enormous. The spending cuts outlined today will impact on frontline services. The vulnerable will likely receive less support, charities will be asked to do more, and will have to do so at a time that their cost base is rising due to the VAT rise."

He added in regards to the Government's vision of the Big Society: “The Government has made clear that as it rolls back the state it wants a Big Society to flourish in response. If this is to happen, it is crucial that now the state works with us in genuine partnership, that we are fully engaged in the Spending Review and that it is not a PR process as some Conservatives have suggested.

“And whilst we welcome the proposals to reform VAT for charities working in partnership, the Budget has highlighted the growing need for more fundamental reform of VAT.

"At a time when the Government wants more services to be delivered by third sector organisations and to encourage the growth of a Big Society, charities are being walloped with a big rise in VAT which puts them at a massive competitive disadvantage when bidding to deliver new services.”