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THE SECTOR REACTION IN FULL: |
17/04/04 |
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Stuart
Etherington, chief executive, NCVO
Following today's announcement by the Chancellor of a payroll giving grant
for SMEs, NCVO is concerned that this scheme does not appear to have been
subject to any consultation with the sector.
We will be seeking reassurances from the Government that there will be adequate
monitoring and assessment of the scheme's effectiveness at driving up payroll
giving.
We are also concerned that, in light of the demise of the 10% payroll giving
supplement, this funding may preclude investment in a Fund for Giving which
could utilise voluntary sector expertise to explore giving trends and new
giving initiatives and products. We firmly believe that this would provide
considerable returns to charities.
We look forward to hearing more about the Commission on the establishment
of a National Youth Volunteering Strategy announced today. It will be important
that this strategy draws on the considerable expertise in delivering volunteering
and mentoring initiatives that already exists in the voluntary sector.
Following NCVO's recommendation to the Treasury that banks' unclaimed assets
could be directed to the voluntary sector we are pleased that the Government
has supported the efforts of some Investment banks that are working towards
this.
We particularly welcome the Government's support for this process to be
run in an open and consultative manner in accordance with best governance
practice and with the involvement of the voluntary sector. We hope that
the Government will continue to strongly encourage other banks to follow
suit and pass on their unclaimed assets to the newly established Balance
Charitable Foundation.
Melvin Coleman, CFDG trustee and UK finance director, Amnesty International
We very much welcome the proposed cash incentive for small and medium sized
firms to introduce payroll giving, and the establishment of a Commission
on a National Youth Volunteering Strategy.
We are also very pleased that the Government have decided to continue to
consult heritage and conservation charities on the proposed changes to the
Gift Aid Day Admissions scheme that were announced in the pre-budget report.
The potential cost of the changes is millions of pounds, and will particularly
hit small independent museums.
Shirley Scott, chief executive, CFDG
Local authorities, the BBC and now places of worship receive grants from
the government for the recovery of VAT. Government regularly tells us that
concessions for charities creates unfair competition, but the failure to
extend the grant back system means the Chancellor has left charities at
a disadvantage. The voluntary sector plays an increasingly important role
in public service provision.
Stephen Ainger, chief executive, CAF
The 10% [Payroll Giving] supplement has had a dramatic impact on employee
giving over the last few years with donations growing from £37 million in
2000 to £86 million in 2003. What is particularly disappointing about the
announcement is that the scheme's success has come at a relatively low cost
to Government.
The focus is now on finding alternative ways to encourage companies and
employees to give. Charities, government and companies must work together
to build on the growth in this enormously important source of income for
charities.
We look forward to liaising with the Treasury on the Government's proposal
to provide cash incentives for small and medium-sized companies in providing
payroll giving schemes. We have only just begun to explore the potential
for payroll giving, and its role in encouraging support both for charities
and the communities in which they operate.
Amanda Delew, director, The Giving Campaign
The announcement of an incentive for SMEs that set up Payroll Giving is
fantastic news. It should lead to more employers offering the scheme, more
donors using it and more charities promoting it, which will generate millions
of additional income for good causes across the country.
Stephen Maxwell, associate director, SCVO
Financially, this budget will leave the voluntary sector in Scotland no
better off and may make things worse. The expected withdrawal of the 10
per cent payroll giving supplement from the Treasury will put a significant
dent in the £2.3 billion per annum that UK charities have raised through
the scheme.
We will have to wait and see whether announced plans to encourage businesses
to set-up payroll giving schemes will off-set this loss. Additionally the
abolition of the Advanced Corporation Tax Credit Relief from April will
hit many charities hard and with no action to reduce the cost of Insurance
Premium Tax, which remains at five per cent, many charities and voluntary
organisations will continue to struggle to meet this ever rising financial
burden.
The promised support for volunteering provides a bright spot on the horizon
with plans to increase the numbers of young people currently able to engage
actively in civil society through a national scheme for volunteering.
Dame Elisabeth Hoodless, executive director, CSV
The commitment from the Chancellor to support young people's involvement
in communities is welcome. It is essential that volunteering opportunities
are available to as wide a cross section of the population as possible.
The families of many young people cannot afford to volunteer unless support
is available. CSV believes everyone should have this chance to engage with
communities to ensure that volunteering is not limited to the rich.
Young people should have the choice of volunteering at home or away from
home and no one should be excluded from participating. We want to engage
people and enable them to share in strengthening public services including
schools, hospitals and social services.
We trust the Chancellor's colleagues in the departments of health, education
and environment will take action to open doors to youthful energy.
Jackie Ballard, director general, RSPCA
The work of the RSPCA and other charities would not be possible without
the generous support of voluntary donors like payroll givers. The government
has always maintained it wants to help the charity sector but today's decision
to end this supplement, means charities will see their payroll giving receipts
suddenly fall by a staggering 10%.
What is only a small sum of money to the government is a crucial source
of income for the charity sector and will have a large impact on all charities
who have to work hard to raise every much-needed penny.
Krishna Sarda, chief executive, Ethnic Minority Foundation
We are encouraged by the chancellor's enthusiasm on the role of the voluntary
sector and volunteering in British civil life. We urge partners in these
initiatives to do more to effectively address the lack of access to, and
the under-representation of minority ethnic members in mainstream volunteering
opportunities, decision-making bodies and on boards. This is crucial if
services are to be truly equitable and reflective of a diverse British society
Dennis Reed, chief executive, Local Government Information Unit
This Budget was another missed opportunity for the government to make local
democracy a central instrument in delivering the improvements to public
services that ministers claim to want.
The sustained funding in health and education is welcome. However, outside
its own priorities the government desires the ends without committing the
means. For example, Kate Barker's study on housing supply has pointed to
a need for more social housing. The Barker Review has provided a menu with
prices. The government's response is a recipe without ingredients.
The government accepts some of Barker's recommendation and is launching
yet another review and consultation process on others. However, public spending
plans for the next three years indicate that social housing investment will
not rise to the challenge.
Whatever changes to the planning system are intended, they will amount to
little if the investment is not there. Ministers have already been backtracking
on the 2010 Decent Homes target for renovating council housing.
The government may be 'locking in' stability, but they are also locking
in poor housing, rising homelessness, child poverty and a local government
system that is hamstrung in being able to play a full role in combating
these social evils.
The Budget also fails to target any help to the low paid or pensioners under
70 to help them with recent council tax increases. Even if the government
grasps the nettle on reforming the council tax, there will still be a few
years in which people have to contend with the effects of this regressive
tax.
At the top of these ministerial statements are the words "check against
delivery". This remains good advice!
Nick Kavanagh, chairman, Charities' Tax Reform Group (CTRG)
The Charities' Tax Reform Group (CTRG) welcomes the following announcements
in the 2004 Budget:
- that the government will grant-aid all the VAT on repairs to listed places
of worship carried out between 1 April 2004-March 2006. It is very important
though, that this becomes permanent as soon as possible;
- the scheme to promote employee support for charities through a payroll
giving scheme for small and medium sized enterprises;
- and the proposal to explore tax incentives to stimulate corporate giving
to charities;
- the moves to encourage more volunteering, particularly among young people;
- that, as part of the Spending Review, the government will consider extending
the VAT refund scheme that has enabled free admission to national museums,
galleries, and university museums;
- that the government recognises the concerns expressed by conservation
and heritage charities about possible adverse changes to Gift Aid. We hope
that through negotiation a solution can be found which does not penalise
arrangements that have been entered into by charities in good faith.
However, CTRG is disappointed at the lack of measures to tackle some of
the underlying problems confronting the sector, such as those associated
with regulatory and compliance costs.
Also, we have put forward a number of creative suggestions for reducing
the burden of VAT on charities, working within the current legislative regime.
We hope the Chancellor will give serious consideration to these proposals
which would start to address the overall burden of £500m paid out each year
in irrecoverable VAT.
Martyn Jones MP, campaigner on using dormant bank accounts for charity
I am delighted that Gordon Brown has made this announcement in the Budget
today. Throughout my campaign my main priority has been to ensure that banks
and building societies re-double their efforts to re-unite customers with
their money.
Unfortunately, the financial institutions chose not to take this matter
seriously as in other countries. This lack of effort has come into sharp
focus in recent weeks as banks have announced record profits. This news
means that the government are taking public opinion seriously on this issue.
I recently met with both the Chancellor and his Economic Secretary, John
Healey to discuss the need for the financial institutions to address the
issue of dormant accounts with more vigour. They agreed that customers deserved
a more proactive approach from banks and building societies. Today the government
announced that it wants this to happen.
The second thrust of my campaign has been that for those accounts that remain
dormant, to go to charities and good causes and not to boost the profits
of bank shareholders. I am delighted that government has backed my idea.
I am certain that this will be a very popular move with the public.
The establishment of the Balance Charitable Foundation is a step in the
right direction, and I welcome the involvement of investment banks - USB
and Lehman Brothers. However the retail banking sector have been put on
notice that more needs to be done on the entire matter of dormant accounts.
The government are now on their case.
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