Third Sector (Recession)
28th October 2009
Nick Hurd calls on the Government to explain its plans for reform of gift aid.
Mr. Nick Hurd (Ruislip-Northwood) (Con): We should be concerned that more than 10,000 charities have ceased operating in the past six months, according to the Charity Commission. After two years of consultation, we are still no clearer about Government plans to make gift aid easier and more effective for charities. Instead, we are now getting signals from private meetings that the Treasury actually wants to scrap tax reliefs for higher rate payers who give to charity. This must be the wrong time to be hiding things from the sector. When will the Government come clean on their plans for the reform of gift aid?
Angela E. Smith: The number of charities has reduced, but from talking to the Charity Commission we find that that is about the cleaning up of the charities list. There are charities that have been on the list for some time but have not been functional, or there may have been mergers.
This Government have a proud record on gift aid, and several changes have been brought in.
Mr. Hurd indicated dissent.
Angela E. Smith: The hon. Gentleman may shake his head, but it is absolutely true. A number of changes have been brought in to simplify and improve the system and get more money out to charities. I understand the frustration of some charities that want to see change more quickly, particularly on the issue of higher rates, but the problem is that there is not agreement among the charities themselves about the best way forward. We are in talks with the Treasury about how best to address the matter, but the improvements that this Government have made have increased the amount of gift aid going to charities. The number of donations has more than doubled since 2001, when we first started making changes. I understand the frustrations, but we are working with the Treasury to ensure that there are improvements.
