Spring is here. For many, this time of year brings with it a sense of optimism and reawakening after the cold and dark days of winter. However, despite the change of season, the dark clouds of gloom still hang over the economy.
The Independent has reported that 58% of people who took part in a survey commissioned by KPMG believed the economy was worsening and just 10% believed it was getting better.
This was the backdrop to Rachel Reeves’ spring statement and why she spoke of “hard” choices in the run-up to it.
Charity finance leaders are accustomed to making hard choices too, especially in recent years when there has been rising demand and increasingly limited resources.
They may have some sympathy for the chancellor about the dilemmas she faces. However, it is clear that, even prior to the spring statement, many of her choices have not been welcomed by the charity sector.
For example, the rise in employer’s national insurance contributions will put additional financial strain on charities. And many charities criticised the government’s cuts to benefits and overseas aid (for more on the spring statement and what it contained, see page 38).
Meanwhile, civil society campaigners have expressed lower expectations of the Labour government’s receptiveness to civil society than before the party was elected. Before the election, two-thirds of campaigners believed a Labour government would be more open to campaigners shaping policy, according to an annual survey by the Sheila McKechnie Foundation. But six months into Labour’s first term, just over half of respondents to a follow-up survey, which interviewed 68 campaigners and activists between 18 December 2024 and 19 January 2025, said so.
In addition, two in five campaigners previously said a Labour government would be more willing than the previous Conservative administration to engage in open public discussion, but now only one in four believe it is.
A good relationship with government can help the charity sector achieve its aims. Many will be hoping that the forthcoming covenant with the sector will reverse the perceived deterioration of the government’s willingness to positively engage with charities.
Tristan Blythe is editor of Charity Finance
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