# Charity shop rate proposal supported by NI voluntary sector

- Link: https://fundraising.co.uk/2017/01/09/charity-shop-rate-proposal-supported-ni-voluntary-sector/
- Published: 2017-01-09T10:18:55+00:00
- Author: Howard Lake

**Proposals by the Department of Finance in Northern Ireland to make charity shops
pay rates at 10% are supported by a significant number of third sector leaders, 
as long as the revenue raised goes directly towards developing entrepreneurship 
in the sector, a study reveals.**

In [proposals outlined in November](https://www.finance-ni.gov.uk/news/statement-assembly-rates-rethink-spurring-economic-growth),
Finance Minister Máirtín Ó Muilleoir suggested that he would consider reducing rating
relief on charity shops from 100% to 90%, and would be in favour of the income being
used to support entrepreneurship amongst social enterprises.

According to the latest [Ulster Bank and CO3 3rd Sector Index](http://www.co3.bz),
published last week, half (**49%**) of almost 200 leaders in the sector surveyed
said that they would agree with this approach. **Thirty eight per cent** said that
they would disagree, whilst **13%** said they were unsure.

## Advertisement

Support for rating on charity shops drops considerably amongst respondents however
if a commitment to direct the funding into the sector were not to be included. In
this scenario, two-thirds would favour a continuation of full rates relief.

## Economic conditions

The Index also found that Northern Ireland third sector leaders expect economic 
conditions in Northern Ireland to deteriorate during the course of 2017:

 * 59% expect the economy to worsen over the next 12 months
 * only 13% expected it to improve.

## Impact of UK Chancellor’s Autumn Statement

When it comes to the recent Autumn Statement by the UK Chancellor, **over 70%** 
believe it will have a negative (**27%)** or no (**48%**) impact on their organisation,
whilst just **4%** believe it will have a positive impact.

## Government funding

In relation to funding from government sources, one quarter (**24%**) of respondents
said that their organisation had seen a reduction during the fourth quarter of the
year. **66%** said they had seen no change, whilst **12%** said that they experienced
an increase.

The Minister of Finance in raising the issue around charity shop rates also commented
that it was important that there were not too many charity shops on the high street
while agreeing the principle of giving them some advantage in relation to rate.

[C03](http://www.co3.bz) is chief executive leadership organisation with over 500
members in Northern Ireland. It has been running the Ulster Bank & CO3 Third Sector
Index for a year now, developing it a barometer of Northern Ireland’s Third Sector.
It is a quarterly online survey of CO3 members who include the leaders of some of
Northern Ireland’s largest charities and social enterprises through to small community
groups. 

 * **[Motorpoint staff use sales skills to boost charity shop sales](https://fundraising.co.uk/2017/01/19/motorpoint-staff-use-sales-skills-boost-charity-shop-sales/)**(
   19 January 2017)
 * **[Shopping for a better online strategy?](https://fundraising.co.uk/2017/06/27/shopping-better-online-strategy/)**(
   27 June 2017)
 * **[UK charity shops generated £270 million in profits in 2015/16 says report](https://fundraising.co.uk/2017/09/21/uk-charity-shops-generated-270m-profits-201516-says-report/)**(
   21 September 2017)

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