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Charities welcome Gift Aid rethink
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| Welcome news: Kath Morris, head of fundraising at the Oxford hospice, Sobell House |
CHARITIES in Oxfordshire have spoken of their relief after the Chancellor announced a three year stay of execution for the tax scheme Gift Aid.
Until Budget Day, churches and charities had been expecting to lose millions of pounds as the rate of Gift Aid was set to fall in line with a cut in the basic rate of income tax.
The decision would have seen the value of every pound given to charity using Gift Aid fall from £1.28 to £1.25, but Chancellor Alistair Darling announced in his budget on March 12 that current rates of tax relief would be maintained on donations until 2011.
Oxfam, based in Cowley, had estimated the cut in Gift Aid would have cost it £2m a year, the equivalent of all the emergency relief supplies held at its Bicester warehouse.
The organisation was among dozens of charities which lobbied the Government for almost 12 months to implement a "transitional relief" scheme.
Mike Parkinson, Oxfam policy adviser, said: "We're delighted the Government's decision on Gift Aid has been reversed.
"The decision was in doubt right up until the budget announcement, and given the current financial climate we weren't hugely optimistic that transitional relief was a scheme the Government would implement.
"This decision will undoubtedly have saved lives in disaster areas around the world. To have replaced that £2m would have taken a huge amount of effort."
Robin Brunner-Ellis, funding adviser for the Diocese of Oxford, which estimated the county's churches would have lost £110,000 over the next year, said. "I am delighted that the Chancellor has offered charities this lifeline.
"This is great news for our parish churches.
"This three-year window is a real opportunity to make sure we are making the most of Gift Aid in all our Christian giving."
Kath Morris, head of fundraising at the Oxford hospice, Sobell House, said: "It is fantastic news and gives us an opportunity to put in place some contingency plans.
"I'm sure lots of MPs have realised local charities providing local services were going to suffer from this, and the Government have realised it was quite an unpopular move."
Treasury spokesman Dan Lambert said: "The decision was taken in recognition of what the impact would have been on charities in the short term.
"It would have meant a £90m a year loss in revenue for charities nationally.
"The Government has listened to what charities have had to say on this issue.
"We realise the cut would have had a negative effect, especially in the short term, given the current economic turbulence."
3:08pm Tuesday 25th March 2008
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CommentPosted by: Ed, Oxford on 4:35pm Tue 25 Mar 08
Any government would be foolish to ignore the charity sector. Without it, the state could not support all the various needs of people who are cared for by charities. The NHS is creaking already.
Gift Aid is vital - as vital as the charities who benefit from it.
Any government would be foolish to ignore the charity sector. Without it, the state could not support all the various needs of people who are cared for by charities. The NHS is creaking already.
Gift Aid is vital - as vital as the charities who benefit from it.
Posted by: Alwyn, Didcot on 5:53pm Tue 25 Mar 08
It is a shame they didn't listen to the lowest paid who will lose on average £2 a week according to the Government. No stay of execution for them, is there?
It is a shame they didn't listen to the lowest paid who will lose on average £2 a week according to the Government. No stay of execution for them, is there?
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