The Conservative/LibDem Budget inevitably means cuts in funding and staff from essential public services. The Government says it wants charities and voluntary organisations to take on running many of those services.
But at the same time the Budget’s VAT increase alone will add at least £140 million to the tax bills of charities, according to the Charity Tax Group.
This means real problems for these groups and will make it difficult for many to continue their present level of work, let alone take on more.
According to the Charities Aid Foundation, the impact will be greatest on smaller charities because VAT accounts for more of their charitable expenditure than it does for larger charities.
How does hitting both central Government, council services and the charity and voluntary sector help to create the so-called “Big Society”?
David Lepper
Ditching Road, Brighton
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