Devolved impact of Spending Review and cuts

Spending Review and autumn statement update

Although last week’s government Spending Review appeared to go easy on the cuts, there are concerns that a “fair proportion of the (voluntary) sector’s current £13bn in grants and contracts”, from national or local government or other official bodies, could be at risk from next year.

NCVO has an article headed ‘Does your funding end in March?‘. They want to build a picture of what’s going on around the country (England presumably in this case), to inform their lobbying and other work. The item also gives some brief tips on doing your own influencing locally.

Spending devolution

Charity Finance Group has a piece ‘Insights on the Spending Review from the IFS‘ – the Institute for Fiscal Studies analysis is always eagerly awaited for the rigour of its work. The article is mainly about how to the move to make local government financially autonomous could radicalise the way grants work across England.

“The impact for charities could be huge but at the moment is largely unknown.”

Close company tax exemption

Third Sector magazine reports that an announcement from HM Revenue and Customs as part of the Chancellor’s autumn statement will see charities partially exempted from rules which create a charge when trustees extract funds from “close companies”.

The exemption will apply where the loan or advance to the trustee is applied wholly to the purposes of the charitable trust. See ‘Corporation Tax: loans to participators, trustees of charitable trusts‘ from HMRC.

See previous VoluntaryNews item for other Spending Review/budget announcements.