This month, we mark Charity Finance Week, our annual week of finance-focused events and online content (culminating in the Charity Finance Summit, where I hope to get the chance to see and chat with some of you. Please do come over and say hello.)
The theme for the week, and this issue, is “operating in a new era” and we are taking the opportunity to examine what the impact of Keir Starmer’s Labour government may be on the economy, charities and their finances.
At the time of writing, we are still waiting for the budget and spending review. However, the message so far from Starmer and his colleagues has not, to say the least, been the most optimistic, with warnings that the country’s finances are in a worse state than expected and that there is a need for difficult decisions (such as the already announced major scaling back of the winter fuel payment).
Change will take time and there is a chance things will get worse before they get better. Charities will be looking for clarity on the direction of travel from the chancellor of the exchequer, while they will want engagement and action from her colleagues on wider policies.
Given that the charity sector has been operating against a backdrop of instability in recent years (with a number of crises, such as Covid-19, Brexit and the cost-of-living hike), there will be a hope the road ahead is a straight one – even if there are some bumps along the way.
While it would seem wrong to predict any new government support for the charity sector in the short term, it remains important that the sector is clear about its needs and challenges when speaking to those in power. The relationship needs to be based on a realistic picture – emphasising the vital role charities can play in helping the government to achieve its aims but also reminding ministers that they need sustainable funding.
To truly harness the power for change that exists among the charities up and down the country, government needs to trust and understand the sector.
Whatever the direction of travel that the country takes in the next few years, charities remain an important part of the UK’s landscape. Let’s hope that, at the very least, the government recognises this and lets charities play a central role in its plans.
Tristan Blythe is editor of Charity Finance
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