As previously announced, the budget confirmed a new 1.25% health and social care levy to fund investment in the NHS and social care. This will affect both charities as employers, as well as their employees, from April 2022. Importantly, charities will need to budget for these increased costs.

CTG had called for an extension of the museums and galleries exhibition tax relief (MGETR), which was due to end in March 2022. It was therefore welcome news that the relief was guaranteed for a further two years until 31 March 2024. But it was disappointing that no commitment to a further extension or review was made beyond that. In addition, the headline rates of relief for the creative tax reliefs will temporarily increase to support cultural organisations’ recovery from the pandemic. However, its practical value will be limited unless caps on claim limits are increased.