# Few Budget benefits for the voluntary sector

- Link: https://fundraising.co.uk/2003/04/08/few-budget-benefits-voluntary-sector/
- Published: 2003-04-08T23:00:00+01:00
- Author: Howard Lake

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.

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

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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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