# Spring Budget ‘another missed opportunity’ - Link: https://fundraising.co.uk/2024/03/07/spring-budget-another-missed-opportunity/ - Published: 2024-03-07T08:00:00+00:00 - Author: Melanie May **Sector reactions to the Spring Budget have called it a ‘missed opportunity’ that offers little to help charities.** Among the plans announced by Chancellor Jeremy Hunt were a 2p cut to National Insurance, an increase in the threshold for child benefit, and an axing of the UK’s tax breaks for non-doms. For charities claiming Gift Aid, Hunt announced an amendment to protect them from subscription legislation, and he also announced extra funding for the National Theatre( £26mn), and medical research charities (£45mn). ## Advertisement The Household Support Fund, which was introduced by the government in 2021 to help families struggling with the cost of living, has been extended by six months. ## Sector response #### ‘Another missed opportunity’ Commenting on the Budget, Sarah Vibert, CEO of [NCVO](https://www.ncvo.org.uk/#/), commented: > “Today could have been a key moment to bolster and empower the voluntary sector > as a vital partner for government in the delivery of public services. But instead, > we have another missed opportunity. >   > “Following a decade of cuts, a pandemic, and the ongoing cost of living crisis, > the voluntary sector is doing its best to continue to meet high and growing demand > with ever-fewer resources. But our best may not be enough for the people who rely > on our support. We’ve been clear that we need bold action from government. >   > “We welcome some of the Chancellor’s announcements – including increasing the > child benefit threshold and the short-term extension of the Household Support > Fund – but today’s budget was most notable for what it didn’t include. Its measures > will not improve things for most people and communities seeking support from charities. > They will continue to pay the price of government inaction.” #### ‘Ignores the elephant in the room’ [Locality’s](https://locality.org.uk/) Chief Executive, Tony Armstrong said: > “With electoral politics taking centre stage, this budget has ignored the elephant > in the room. >   > “Mounting pressure on councils to cut services and sell assets just means local > people are paying the cost. From Birmingham to Bristol, Nottingham to Thurrock, > council cuts mean that charities and community organisations are struggling to > keep vital local spaces and services alive.** ** >   > “It’s clear that a more sustainable long-term funding settlement for local government > is needed. On that the Chancellor remained silent. The Government needs to act > now to stop the loss of key services and spaces which have been vital in holding > communities together.  Local people should not bear the brunt of council’s financial > problems. >   > “But ultimately, we have to move away from short term funding crises to create > a longer term shift of power. That’s why in our manifesto we’re calling for radical > reforms that put power firmly in community hands. That includes decision making > powers for local people so that communities themselves can take charge of the > things which are important to them.” #### ‘Fails to address critical issues’ Richard Sagar, Head of Policy at [Charity Finance Group](https://www.cfg.org.uk/), commented: > “We welcome the news on funding for creative industries, but in the context of > local government funding collapse, it’s hard to see how this will help the arts > sector at the grassroots level. >   > “We also welcome the government’s firm commitment to ensure charities can continue > to claim Gift Aid on membership subscriptions. >   > “Concerns remain about the DMCC Bill, but we will engage with government to address > concerns about a ‘cooling off period’ and work to ensure that the government also > creates guidance and support for affected charities. >   > “Once again, we’re disappointed that there is a lack of clarity on how the government > will put local authorities on a sustainable financial footing. The third sector > is sounding the alarm, and it remains unheard. > “On the whole, there were a few positives, but a lot of crucial issues remain > unaddressed and the announcements will do little to increase confidence and certainty.” #### ‘Little designed to support those in greatest need’ Matt Whittaker, CEO of [Pro Bono Economics](https://www.probonoeconomics.com/), said: > “While temporary maintenance of the Household Support Fund is welcome, there is > little else in today’s announcement designed to support those in the greatest > need. That is likely to mean demand on the nation’s charities continuing to climb. > The charity sector is just beginning to emerge from the pandemic and cost of living > crisis, and capacity remains tight – with a third of charities expecting to be > unable to meet demand for their services this quarter. Indications are that charity > income will gradually improve over the next year, but that recovery is fragile. >   > “The Chancellor’s emphasis on public sector productivity is likewise welcome but > insufficient. Investing in delivering better services is the right thing to do, > but he should have done more to offset the £20 billion a year real-terms reduction > in spending on unprotected public services that is currently pencilled in for > 2028. Failing to act on this implies a level of Austerity 2.0 which is simply > unrealistic at a time when local government is faltering and courts, prisons and > social care are already wrestling with difficulties. Whoever is in charge of HM > Treasury at the next Spending Review will inevitably have to change course. >   > “For all that the Chancellor pulled a rabbit out of the hat on National Insurance, > his real sleight of hand was on disappearing the crisis in local government in > his statement. Councils are issuing section 114 notices at unprecedented rates, > and cuts are following rapidly, including to vital community services. Among the > 60% of charities responding to PBE surveys that say they work with local authorities, > 28% expect a reduction in council funding over the coming year. This follows a > cumulative loss of £13.2 billion to charities from local government between 2009- > 10 and 2020-21. People with the lowest wellbeing and the charities that support > them will continue to struggle as long as this crisis remains unaddressed.” * **[BUDGET: £20 million hardship fund – Yes, please…](https://fundraising.co.uk/2009/04/23/budget-20m-hardship-fund-yes-please/)**( 23 April 2009) * **[Will the Budget impact on legacy income?](https://fundraising.co.uk/2015/07/09/will-the-budget-impact-on-legacy-income/)**( 9 July 2015) * **[Charities seeking greater Gift Aid support in Budget 2016](https://fundraising.co.uk/2016/03/16/charities-seeking-greater-gift-aid-support-budget-2016/)**( 16 March 2016)