# Opportunities missed & charities ignored: Sector response to the Budget

- Link: https://fundraising.co.uk/2021/03/04/opportunities-missed-charities-ignored-sector-response-to-the-budget/
- Published: 2021-03-04T09:55:47+00:00
- Author: Melanie May

**The charity sector has not been listened to by the government with yesterday’s
Budget failing to deliver the support it needs, members of the #NeverMoreNeeded 
coalition have said.**

The coalition, which represents thousands of social change organisations and charities
across the UK and includes among its members the Chartered Institute of Fundraising,
the DSC, NCVO, ACEVO and the Charity Finance Group, [issued a statement](https://nmn.org.uk/2021/03/03/nevermoreneeded-coalition-reacts-to-budget-2021/)
saying:

 

## Advertisement

> “This government has today made the deliberate choice not to listen to the collective
> voices of over 1000 civil society organisations who wrote to the Prime Minister
> and Chancellor asking for emergency support.
> “Millions of people and causes served by charities across the country have been
> the hardest hit, but today the rising tide of need against reduced capacity to
> meet it has been ignored and the services they rely on remain at risk of disappearing.
> Far from being ‘fair’ as the Chancellor claimed, this Budget overlooks those hardest
> hit and left behind.
> “To date this Government has made £407bn available to ‘support the jobs and livelihoods
> of the British people’ and yet just a tiny fraction of that has been used to safeguard
> tens of thousands of charitable services the British people rely on.
> “Once again, charities are left to make the most of schemes designed for businesses
> such as the Job Retention Scheme which are not able to be used by those who need
> to scale up delivery to meet demand.
> “Right now, a year into this pandemic, the emergency is not over and people are
> suffering. The government’s ambitions to ‘level up’ and ‘build back better’ will
> simply not be delivered by its constant focus on business alone as the solution–
> right now it urgently needs to recognise and support the social sector.”

In a similar vein, the [DSC](https://www.dsc.org.uk/)‘s own response also drew attention
to what it feels is a lack of understanding and valuing of the sector’s role by 
the government.

Jay Kennedy, Director of Policy and Research at DSC, said:

> “Once charities close down, and cut or mothball services, they won’t be around
> to help rebuild the country and address the devastating aftermath of this crisis–
> whether in mental health, education, or the myriad social needs of people young
> and old.
> “It’s certainly not for want of trying. We and our colleagues in the #NeverMoreNeeded
> campaign thank you, dear reader, for helping us to put every conceivable argument,
> data point, and message to the Government we can think of.”

It is asking charities to keep signing its open letter, to stay tuned for further
action [here,](https://dsc-enews.org.uk/6S7-79PSG-N8LE7-4DA6I8-1/c.aspx) and to 
keep telling their stories at the hashtags #RightNow and #NeverMoreNeeded.

[Charity Finance Group](https://www.cfg.org.uk/)’s CEO, Caron Bradshaw OBE, said
that it had been initially encouraged by the Chancellor’s words of recognition of
the extraordinary hardship so many people are now facing, and that there were some
bright spots in the Budget. However, she said, overall it was a missed opportunity:

> “The government has once again failed to recognise the vital role civil society
> plays in protecting and supporting those same people.
> “The Chancellor has failed to repair the safety net used by millions of our citizens
> every day, despite us very clearly laying out why an [Emergency Support Package](https://www.cfg.org.uk/press_release_civil_society_calls_for_government_action_right_now_campaign)
> and[ longer-term support measures](https://www.cfg.org.uk/charity_sector_calls_for_emergency_support_package)
> are needed #RightNow.
> “Deliberate and continued refusal to support social change organisations delivering
> public benefit leaves our sector precariously balanced on the cliff edge of rising
> demand and reducing income.

She added:

> “There are few bright spots in this Budget that we must acknowledge. The extension
> of the furlough scheme until September 2021 will come as a relief to many. But
> as we have come to expect, a failure to engage in amending this scheme – in order
> to support continued delivery of services – leaves the sector having to decide
> between mobilising or mothballing.
> “The additional money for domestic abuse survivors, and mental health services
> for veterans, as well as the additional funding for the arts and culture sectors,
> is a start, but pales into insignificance when stacked against measures to boost
> business. This is yet another example of a failure to value the contribution to
> the economy and society delivered by our sector.”

Ecclesiastical Insurance’s Angus Roy drew attention to the fact that charities had
not been granted an exemption from Insurance Premium Tax (IPT), despite lobbying.

He said:

>  “We’re disappointed that the Government has again chosen not to make charities
> exempt from Insurance Premium Tax (IPT). This, combined with the lack of a dedicated
> support package for the sector, could be the final nail in the coffin for many
> charities after such a dreadful year. “Charities have stepped up to support those
> most in need and have worked tirelessly in our communities throughout the pandemic.
> The money saved by not paying IPT would free up vital funding for charities and
> help increase their impact.”

The [Charity Retail Association](https://www.charityretail.org.uk/) welcomed the
measures in Budget 2021 to support the retail sector’s recovery but expressed concern
at the lack of support for the wider charity sector and the lack of clarity on access
to the new Restart Grants for larger charity retailers.

Robin Osterley, its Chief Executive, said:

> “The boost for retail in today’s Budget will help support the financial recovery
> of charity shops and their ability to raise much-needed funds for charities. The
> introduction of Restart Grants and an extension of the business rates holiday 
> for retail are vital foundation stones that will help charity retailers bounce
> back from the dramatic setbacks of the past year.”
> “The Restart Grants will provide welcome support to many charity retailers, but
> it is a major disappointment that it is still not yet clear whether and when the
> UK Government will reconsider the continued application of old EU state aid caps
> which mean that larger retailers will not be eligible for the Restart Grants”
> “Whilst there is much in the Budget to be welcomed from a retail perspective, 
> it is disappointing that the Government are yet to introduce a renewed emergency
> funding package for charities who are struggling with an increase in demand for
> their services at the same time as they have lost income due to lockdown restrictions.”

Key points from yesterday’s Budget are [summarised here](https://fundraising.co.uk/2021/03/04/the-budget-for-charities-key-announcements/).

More sector views:

> 6 mentions in the Budget for ‘charities’ out of 107 pages. 
> 3 of them are in a
> short paragraph about armed forces charities2 reference the £750m package from
> LAST YEAR1 is related to importing goods (eg face masks) for those tackling the
> pandemic. [pic.twitter.com/oMyqRwrzKR](https://t.co/oMyqRwrzKR)
> — Daniel Fluskey (@danielfluskey) [March 3, 2021](https://twitter.com/danielfluskey/status/1367118748231077888?ref_src=twsrc%5Etfw)

> Despite several of the provisions announced in today’s budget being of interest
> to some charities – see [@PaulWinyard](https://twitter.com/PaulWinyard?ref_src=twsrc%5Etfw)’
> s excellent thread below for details – we are disappointed to see that the call
> for sector-specific support has remained unanswered. [https://t.co/kAeVCvq2HO](https://t.co/kAeVCvq2HO)
> — Sarah Vibert (@sarahvibert82) [March 3, 2021](https://twitter.com/sarahvibert82/status/1367147519004786688?ref_src=twsrc%5Etfw)

> So disappointing not to hear [@RishiSunak](https://twitter.com/RishiSunak?ref_src=twsrc%5Etfw)
> talk about the challenges those of us who work for charities are facing. I’m disappointed
> for the people who need us to be there now more than ever and for the causes we
> care so much about [#RightNow](https://twitter.com/hashtag/RightNow?src=hash&ref_src=twsrc%5Etfw)
> [#NeverMoreNeeded](https://twitter.com/hashtag/NeverMoreNeeded?src=hash&ref_src=twsrc%5Etfw)
> [https://t.co/V9aXFbBJKq](https://t.co/V9aXFbBJKq)
> — Ceri Edwards 🌈 (@jceriedwards) [March 4, 2021](https://twitter.com/jceriedwards/status/1367407416363614209?ref_src=twsrc%5Etfw)

> Charity Tax Group's Acting Chair Richard Bray has responded to today's [#Budget](https://twitter.com/hashtag/Budget?src=hash&ref_src=twsrc%5Etfw)
> announcement. He welcomes announcements on JRS & business rates/grants but expresses
> disappointment at the lack of support for [#charities](https://twitter.com/hashtag/charities?src=hash&ref_src=twsrc%5Etfw)
> and lack of detail about state aid treatment of business grants [https://t.co/lMwoWD10dy](https://t.co/lMwoWD10dy)
> [pic.twitter.com/GgSF5Mt5cc](https://t.co/GgSF5Mt5cc)
> — Charity Tax Group (@CharityTaxGroup) [March 3, 2021](https://twitter.com/CharityTaxGroup/status/1367147613414445057?ref_src=twsrc%5Etfw)

 * **[Charities urge Chancellor for more support ahead of Spring budget](https://fundraising.co.uk/2023/03/09/charities-urge-chancellor-for-more-support-ahead-of-spring-budget/)**(
   9 March 2023)
 * **[£100mn Budget pledge for charities & community organisations](https://fundraising.co.uk/2023/03/15/100mn-budget-pledge-for-charities-community-organisations/)**(
   15 March 2023)
 * **[Spring Budget ‘another missed opportunity’](https://fundraising.co.uk/2024/03/07/spring-budget-another-missed-opportunity/)**(
   7 March 2024)