The Charities Bill has been included in the Queen’s speech. Announcing the bill, the Queen said: “My Government believes that the voluntary sector is a great strength of this country.

“Charity law will be modernised so that a vibrant, diverse and independent charitable sector can continue to flourish with public confidence.”

She also announced legislation that will deal with the distribution of lottery money and provide the statutory framework for the Big Lottery Fund, formed by the merger of the Community Fund and New Opportunies Fund.

The sector’s umbrella bodies have welcomed the announcement. "A Charities Bill fit for the 21st century that puts public benefit at the heart of charitable status and provides a clearer legal framework for charities is now on the legislative agenda," said NCVO chief executive Stuart Etherington. "NCVO looks forward to a new Charities Act by 2005 that will clarify what it means to be a charitable organisation and will clearly
define the role of the sector's regulator."

“We are pleased that the Government have recognised the huge importance of charities, and the need for regulatory reform, by announcing the Bill in the Queen's speech,” added Shirley Scott, chief executive of CFDG.

At the Institute of Fundraising, chief executive Lindsay Boswell said the sector would breathe "sigh of relief" that the bill had been included.

Stephen Bubb, head of Acevo, however, warned the sector to remain vigilent: "We're delighted that the charities bill has been included in the Queen’s speech. This important bill represents a major advance towards a modern, effective charity sector.

“But the story is not yet over. The challenge for charities is now to make sure this bill is given legislative priority, and made law before the next general election.”