Funding news

Further breakdown of Budget 2010 for the Voluntary Sector - 29 March 2010

The chancellor's 2010 Budget has received a cautiously positive response from many sector representatives.

A number of comments taken from sector representatives and infrastructure bodies such as NCVO and NIVCA, show a cautious yet positive response to the planned budget for 2010. Among the plans favoured include:

  • UK charity tax reliefs will be extended to charities and Community Amateur Sports Clubs in the EU and in the European Economic Area countries of Norway and Iceland.
  • On public spending, the chancellor announced £5 billion in savings, cutting back in a number of areas such as IT projects, legal aid, prisons and cutting residential care by helping more elderly people stay in their own homes.
  • Spending on frontline services such as the NHS and schools will be protected for two years from 2011.

ACEVO's argument has been that the third sector can play a key role in transforming public services, getting better outcomes for people and reducing the public deficit.

NCVO were pleased to see a commitment made on basic bank accounts and support for an international transaction tax, both of which featured in their manifesto. Also noted was the commitment to identify how EU rules can be used to allow UK charities to share and outsource services, such as HR and IT, to other charities without incurring VAT and an extension of Gift Aid tax relief to some EU countries on UK donations. Praise was also given to the commitment given to the Future Jobs Fund, to provide a job or training to all young people aged 18 to 24 who have been out of work for six months.

NIVCA commented that the budget was good 'in the circumstances' and the Chancellor had been credible in his forecast for reducing borrowing figures.

The King's Fund left no negative comments but warned that the predictions were 'what we already knew', forecasting that improving productivity has to be the top priority if the NHS is to maintain quality and avoid having to cut services.

A comprehensive breakdown from these responses and further Reponses from other third sector organisations can be found on the Charity Times website and the Cabinet Office website.