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GORDON BROWN PUTS THE SOCIAL AGENDA TOP OF BUDGET LIST 17/04/04
 
The Chancellor has set out a wide range of social spending in this year's Budget, with cash incentives for donations, volunteering, and improved funding for health and education groups topping the list.

In a 56-minute speech to Parliament, Gordon Brown announced a major initiative for helping payroll giving, plans for two new volunteering schemes, matched funding for major charitable education projects abroad, and a rise in funding to the NHS.

He told the House of Commons: "The purpose of this Budget is to lock in, for Great Britain, an economic stability that can and will endure."

Brown's surprise announcement for the charity sector was the plan to provide a cash incentive to encourage small and medium-sized firms to set up their own payroll giving schemes - although there was no announcement repealing the end of the government's 10% addition to all donations made in this way.

The full Budget also includes proposals to continue discussions with heritage and conservation groups over the loophole in claiming gift aid on admissions.

He also revealed that the next Spending Review will contain plans for increasing volunteering - especially through mentoring schemes and targeted at the youth market.

He said: "Gift Aid is now worth £2.3bn a year to charities and voluntary organisations who are at the heart of British civic life.

"With 2005 the British Year of the Volunteer, the Home Secretary and I will consider, in the Spending Review, new resources for two volunteering initiatives: first to encourage and extend mentoring; and second to encourage national community service by young people."

He went on to announce matched funding for a year for the Commonwealth Education Fund (which supports the objective that by 2015 every child everywhere has primary education), and matched funding also for the Sports Relief charity which tackles AIDS and poverty in Africa.

Brown commented: "2005 is the year where, as the Prime Minister has said, the needs of Africa will be the focus of the UK's G7 Presidency as a Presidency for development. I can tell the House that this government will not freeze or cut the international development aid budget but increase it."

Education at home also received a boost with a wide number of reforms to modernise primary and secondary education, and plans to increase the overall investment for English education to £6bn next year, and up to £8.1bn by 2008.

The Chancellor also confirmed previous announcements that the NHS will receive a 10% cash rise (7.2% in real terms) each year to 2008, as well as a ten-year plan to fund a new National Clinical Research Network, which brings together the private and public sectors with medical charities.

He said: "Our health budget is not just what we spend on the National Health Service but on medical research that is bringing new treatments and cures. I can confirm today that the combined budget for medical research and development within the NHS will rise and, by 2008, approach £1.2bn a year."

Unison general secretary Dave Prentis said: "This is a win-win budget for people and public services. Gordon Brown knows that by investing in our public services he is investing in our future. He's had the courage and foresight to plan further ahead than many politicians usually do."

More Budget reaction will appear here as we get it

ALSO SEE:
17/03/04 - view story
LOSS OF PAYROLL GIVING BOOST TEMPERED BY NEW INCENTIVES

17/03/04 - view story
NOTE OF CAUTION SOUNDED OVER NEW VOLUNTEERING SCHEMES

17/03/04 - view story
CHANCELLOR BACKS UNCLAIMED ASSETS RELEASED FOR CHARITY

17/03/04 - view story
ALL THE SECTOR REACTION IN FULL

 
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