Could do better: Budget reaction round up
Melanie May | 28 October 2021 | News
While there were some positives, yesterday’s Budget lacks detail, does not go far enough, and could see charities left with a £6.6 billion funding gap from the pandemic, charities and representational bodies have said.
Positive steps noted included the announcements of a commitment to support health research and development, the Recovery Loan Scheme extension, more government funding for community sports facilities across England, and the first projects from the Levelling Up Fund.
However, charities also drew attention to the funding pressures they are under, and called for the government to collaborate more closely with the sector as well as give it a greater voice to help address the country’s health and social inequalities.
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A £6.6bn pandemic scar for charity sector
Matt Whittaker, CEO of Pro Bono Economics:
rnrn“The Chancellor has given a vital boost to public services and offered a helping hand to workers faced with a cost of living crisis through his pledges on Universal Credit and the National Living Wage.rnrn rnrn rnrn“But this does little to help the country’s most vulnerable, including the 700,000 long-term unemployed, who have been hardest-hit by the pandemic. Charities are vital to supporting those at the sharp end of society, but the OBR’s forecasts for household spending imply that the sector could be heading into winter with a permanent £6.6 billion gap in public giving as a result of the pandemic.rnrn rnrn rnrn“All of this makes it even more disappointing to see charities once again conspicuous by their absence in the Treasury’s documents. The sector employs nearly a million people in the UK and has provided a lifeline throughout the pandemic, yet it remains overlooked by too many of the nation’s policymakers.rnrn rnrn rnrn“There was also very little evidence in the Chancellor’s speech of investment in the ‘vibrant communities’ the government has promised to enhance. The government says that improving social infrastructure in the UK’s communities is essential to ‘levelling up’ but has failed to commit to this with funding.”rnrn
Recovery Loan Scheme extension welcomed but reduction in government guarantee disappointing
Stephen Muers, CEO, Big Society Capital:
rnrn“We welcome the extension of the Recovery Loan Scheme, which has been critical in enabling social enterprises and charities to access affordable investment, however, we are disappointed in the reduction of the government guarantee from 80% to 70%.rnrn rnrn rnrn“With many of the social enterprises and charities we support based in the UK’s most disadvantaged communities, this extension is vital in enabling the UK to Level Up. We hope the support provided by loan schemes like these will continue throughout the COVID-19 crisis and beyond – providing invaluable support for the communities that need it the most.”rnrn
Insufficient investment in social infrastructure & too little detail
Tony Armstrong, Chief Executive of Locality:
Further £205m funding for community sports facilities welcomed
Robert Sullivan, CEO, Football Foundation:
rnrn“This investment is welcome news for all those involved in grassroots football across the country. We know that playing on good quality facilities helps people get fitter, improves mental wellbeing, grows confidence and builds stronger relationships. This is all essential for individuals and communities as we emerge out of the Covid-19 crisis.rnrn rnrn rnrn“With the government, Premier League and The FA’s investment, we have made plenty of progress in the last two decades, but there is still lots of work to do to ensure all communities across England get the standard of local sports facilities they need and deserve. This new funding will unlock the power of even more pitches to help transform people’s lives.”rnrn
More focus needed on social infrastructure & a greater voice for charities
Neil Heslop, CEO, Charities Aid Foundation:
rnrn“Levelling up is about empowering communities, and no group is more embedded in local communities than the charitable organisations working on the ground. As well as offering employment and growth opportunities for the area, charities act as a precious voice for groups that are too often excluded from existing structures. Giving charities a seat at the table for localised decision making will be crucial if levelling up is to truly ensure that no one is left behind.rnrn rnrn rnrn“We share the Government’s commitment to supporting areas that have not sufficiently benefited from the UK’s prosperity and today’s Budget contains several positive steps. In particular, the commitment to support health research and development is good news, given the immense financial pressures on charities in the sector currently, as well as the announcement of the first projects from the Levelling Up Fund.rnrn rnrn rnrn“However, levelling up must address more than just economic imbalances, and whilst the focus on local infrastructure is understandable, social infrastructure is important for a successful recovery. We urge the Government to collaborate to give charities a greater voice, which will be key to addressing the health and social inequalities seen across the country.rnrn rnrn rnrn“The Chancellor’s pledge to return to the 0.7% foreign aid spending commitment by the end of this Parliament will not alleviate the drastic shortfalls facing charities working across the world today and we continue to encourage the Government to work with development charities to minimise the effect of the cuts in the interim period.”rnrn
Minimum pay rise welcome but not enough to cover rising cost of living
Adrian Axtell, National Secretary of Community:
- Government to lower RCB limit to £5 million (3 December 2021)
- One year left to register unresolved historical banking disputes with BBRS (23 February 2022)
- CAF subsidiary partners with abrdn to launch ESG-focused funds for charities (17 May 2022)
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About Melanie May
Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via thepurplepim.com.