Why your supporters are wealthier than you expect. Course details.

Few Budget benefits for the voluntary sector

Howard Lake | 8 April 2003 | News

Chancellor Gordon Brown’s 2003 Budget today includes only a few benefits for the voluntary sector.

A pilot scheme will be launched in May 2003 to offer financial support to encourage disadvantaged young people to work for a charity during a gap year.

In addition to pledging £240m for humanitarian aid to Iraq, Mr Brown announced plans for a £50 billion fund for primary education and healthcare in the developing world.

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There will also be a study of the progress made by government departments in encouraging the involvement of the voluntary and community sector in local service delivery in preparation for the next Spending Review. The National Council for Voluntary Organisations (NCVO) welcomed this move. The umbrella body’s CEO Stuart Etherington said: “NCVO hopes that this review will also provide
an opportunity for all departments to be reminded of the Government’s commitment to the principles of the Compact and recognition of the added value which voluntary organisations can bring to services.”

The Charity Finance Directors’ Group say that the Budget “offers little to charities in difficult times.” Les Jones OBE, CFDG Vice Chairman and Deputy Chief Executive of the WWF, said: “Although the Chancellor may be optimistic about the prospects for the economy, we are not as optimistic about the financial environment for charities. The charity sector is facing a difficult fundraising environment and falling reserves, at a time when the stock market has fallen by about 50% since 2000. If house prices fall, legacy income is likely to be hit hard unless we see dramatic increases in the stock market.”

The CFDG lamented the fact that the Chancellor did not extend the compensation charities receive due to the loss of Advance Corporation Tax Credit. The Group was also disappointed that there were no concessions for charities in relation either to the increases in National Insurance or the continuing issue of irrecoverable VAT.

Visit The Guardian’s special report on the Budget 2003.

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