Charities broadly welcomed measures to deal with coronavirus announced in the Budget, but said the government missed opportunities to deal with other important issues.
Rishi Sunak, who became chancellor on 13 February 2020 after Sajid Javid resigned as chancellor in the middle of Boris Johnson's cabinet reshuffle, announced a range of measures in response to the coronavirus outbreak.
Sunak promised a £5bn emergency response fund to support the NHS and other public services, and said that statutory sick pay would be paid to all those who choose to self-isolate, even if they do not have symptoms.
The chancellor also announced a £500m hardship fund to help vulnerable people, and said that employers with fewer than 250 staff will be refunded for sick pay payments for two weeks. Small firms will be able to access “business interruption” loans of up to £1.2m, and business rates will be abolished for firms in the retail, leisure and hospitality sectors with a rateable value below £51,000.
Additional funding for veterans' mental health was also announced. A £10m uplift will be provided in 2020-21 to the Armed Forces Covenant Fund Trust, to deliver charitable projects and initiatives that support veterans with mental health needs.
Other measures include plans to double spending on research and development by 2024, and investment in infrastructure projects.
The economy is predicted to grow 1.1% this year, not taking into account the impact of coronavirus.
Infrastructure bodies
Charity Finance Group (CFG): 'Did not dig enough into issues'
Caron Bradshaw, chief executive at CFG, said: “There were big headlines and giveaways in this first budget of the new decade. However it was a budget delivered without adjustments for the impact of coronavirus, which could be significant and long lasting. In addition, the measures dealt with the visible tips of icebergs, such as the homelessness provisions, without digging deep enough into the underlying issues.
“The budget may have been heralded as ‘getting it done’, but we need government to ‘get’ the sector and understand the role it plays in a thriving post Brexit society.”
NCVO: 'Practical provisions welcome but disappointing there is no detail on Shared Prosperity Fund'
Paul Winyard, policy manager at NCVO, said charities should be aware that provisions made for employers around coronavirus and sick pay as that will apply to them.
He added that a number of tax announcements that were helpful, including the rough sleepers fund, and scrapping of the Tampon Tax, which had come about after charity campaigns. But said there were questions around “what happens to the Tampon Tax Fund which has given £62m to good causes”.
He said removing tax from digital publications is “welcome news” and had been one of the recommendations of the Charity Tax Commission report last year.
On plans for a consultation on business rates he said it was important to make sure that “any new system doesn’t leave charities any worse off”.
However, he said: “It is a bit of a shame that they didn’t mention support around social and economic infrastructure, particularly around the Shared Prosperity Fund (SPF).
“We were hoping that there might be some details around the consultation about the SPF in there.”
With the SPF due to launch in April 2021, he said NCVO feared that if launching the consultation is left until the autumn it will be a “tight turn around”.
He said it was also disappointing that there was not more detail about funding for local government because there is an “urgent need” for “sustainable local authority funding”.
Charities Aid Foundation (CAF): 'Charities can play a role in the levelling up agenda'
Sir John Low, chief executive at CAF, said: “It is good news that the government is making a robust response to the economic threat posed by the coronavirus. As organisations that work to support individuals in communities every day, the charity sector has a critical role to play in supporting the country. Just as business will need support, charities too expect to struggle if the virus affects the economy and we are already seeing the impact of coronavirus through issues such as the cancellation of fundraising events.
“We urge the government to confirm that the announcements to help businesses weather the storm will be extended to include charities across the UK. Indeed civil society plays an essential role in many of the aims outlined in the Budget despite not being mentioned, from supporting society’s most vulnerable, the levelling up agenda and tackling issues such as homelessness.”
Social Enterprise UK: 'Content of the Budget is underwhelming'
Peter Holbrook, chief executive of Social Enterprise UK said: “It is clear that this Budget has been shaped primarily by the need to tackle the coronavirus rather than looking at the long-term economic reforms the country needs. The short-term support offered to businesses to cope with a downturn in trade due to coronavirus is welcome and it is important that government promotes these to social enterprises as well as the rest of the private sector.
“However, despite all the rhetoric about levelling up – the content of the Budget is underwhelming. It is still early days, but the government must look at the fundamental structure of our economy as well as investing in infrastructure and public services. I agree with the chancellor that we must unleash the potential of business. But the chancellor must see that the most untapped potential is in social enterprises and responsible business, rather than continuing to reward business as usual.
He urged the government to work more with social enterprises: “We’ve reached the limits of what we can achieve with the old ways of doing business, we need to look to the future. The pressing climate emergency makes this even more vital and I hope that once the short-term challenge of the coronavirus has passed, this government will work with social enterprises to build a new economy that works for people and planet.”
NPC: 'A government that is serious about using public money to rebalance the country'
Dan Corry said: “We’ve all been curious how much of a break Boris Johnson’s government was going to be from Conservatives before him. We now have a definitive answer. Even excluding the £30bn stimulus to fight coronavirus this was a symbolically big spending budget, £175bn over five years, that signals not just a break with austerity but a government that is serious about using public money to rebalance the country.
“Increases in school arts and sports came as a surprise and could be an opportunity for local charities to provide these services. Money to end rough sleeping will of course be welcomed, as will money for the Armed Forces Covenant Trust. But the one thing that really stands out is the regional agenda. We have a new metro mayor for West Yorkshire and mayors will get ‘London-style’ funding transport settlements worth £4.2bn over this parliament. A new ‘campus’ will be set up with elements of the Treasury, BEIS, DIT and MHCLG in the North and the government has committed to moving 22,000 civil servants outside London. There will be more money for local authorities, though they are already questioning if it will be enough and sustainable.
“Charities need to think about how they take advantage of this agenda, and what changes they will need to make. How do charities fit into a new world of big spending on research, distributed more broadly across the country than in the past? Charities should be thinking about their relationships with local, regional and national government, and how to open new doors to convince them that the social infrastructure charities provide is as important as the physical infrastructure the government is so keen on.”
Charity Tax Group: 'Does not address the wider funding uncertainty that charities currently face'
John Hemming, chair of CTG, said: “Overall, the lack of references to charities in the Budget is disappointing. Funding for veterans projects and cultural projects are welcome, but do not address the wider funding uncertainty that charities currently face, at a time they are being asked to do more. Measures have been introduced to support business and individuals, but the Government can do more to support charities, as a key supporter of wider society.
“However, a number of broader announcements will benefit charities, most notably the decision to introducing a VAT zero rate on digital publications. This is an outcome that CTG has campaigned for over many years and was prominent in our Budget submission to the chancellor. Charities use publications to tell people about their work or to inform the public in an area the charity is dedicated to. Charities will also try to generate extra funds in this way to fund their charitable activities. A lower tax burden enables more resources to go into these activities. We look forward to the detail on the scope of the relief.
“The decision to remove the Tampon Tax is also welcome and highlights the government’s willingness to introduce flexibility into the VAT system to support social purposes. We will be calling on the government to now look at the obstacles charities face in the VAT system. CTG’s VAT research project findings, due to be published later this spring, will highlight the levels of irrecoverable VAT faced by charities as well as the benefits of VAT reliefs to the sector.”
Locality: 'Vital that funds benefit charities'
Tony Armstrong, chief executive of Locality, said: “We welcome the serious response to the immediate challenge laid out by the new chancellor, including a raft of funding measures focused on supporting the NHS, businesses and people most at-risk.
“However, it is vital that these funds – from statutory sick pay support to loans and grant funding – benefit charities as well as businesses. Charities are important employers who will be under additional pressure working with affected communities. We will be working with colleagues across the sector to ensure small and medium sized charities – as well as businesses – are able to access this support.
“Beyond the coronavirus threat, we are pleased the chancellor recognises our imbalanced economic model, which we know hasn’t benefited all places equally. But the measures announced today risk relying on the traditional approaches which have led us here in the first place. We’ve heard from our members time and time again that big ticket infrastructure projects struggle to reach poorer communities. And increasing cash alone won’t deal with root causes of pressure on public services and rising poverty. Detail on the UK Shared Prosperity Fund was also a notable omission from today’s budget.
“We need a different approach to go with new money – one that keeps it local and puts communities in charge. The good news is that the announcement of the spending review process gives us the opportunity to do that. With the increased size of spending envelope announced, we will work with government to make sure it’s spent in the right way to deliver on their priorities.”
Institute of Fundraising: 'There are many actions the government could take in the next Budget'
Peter Lewis, chief executive of the Institute of Fundraising, said: “We recognise the difficulty in planning as the coronavirus situation develops, and welcome any early measures to help mitigate the impact. Charities need reassurance that they too can access the same support and funding that was announced for businesses, as well as extra measures to ensure they can continue their important work. There are genuine concerns about coronavirus, for the health and wellbeing of everyone, but also the direct impact it might have on charity workloads and income. Many fundraisers and charities will need to make decisions that could affect their income streams moving forward. We look forward to hearing from the government on their measures specifically for charities, including an emergency fund to support charities at financial risk and implementing short-term tax deferments.
“There are many actions the government could take in the next Budget to support charitable giving that we hope to see, particularly around opening up funding through fiscal incentives for legacy giving, implementing a higher rate gift aid, and reviewing corporate gift aid.”
Delivery charities
The British Red Cross
Zoe Abrams, executive director at the British Red Cross, said: “Better connected communities are more resilient communities. Whether floods or an epidemic, in a crisis people who are lonely or socially isolated are hit the hardest.
“Whilst loneliness is not mentioned in the Budget today, we urge the government to commit to a meaningful funding plan to tackling loneliness in the forthcoming spending review.”
Citizens Advice
Gillian Guy, chief executive of Citizens Advice, said: “The chancellor’s decision to extend statutory sick pay to those self-isolating will be a relief to some workers. But the self-employed and people in the 1.5 million jobs that don’t qualify for sick pay are still at risk of falling through the gaps if they become unwell.
“We’re pleased to see the waiting period for contributory Employment and Support Allowance has been removed, but we know those who need to apply for Universal Credit will still face a lengthy wait for a full payment and could be pushed into debt as a result.
“This unprecedented situation has exposed the long-standing flaws and inconsistencies in our sick pay and benefits systems. While today’s measures are encouraging, the government needs to take a longer term view and build on them to ensure our social safety net is fit for purpose.”
Action for Children
Action for Children’s director of policy and campaigns, Imran Hussain, said: “We can’t level up the country by leaving our most vulnerable children behind. Today’s Budget paid more attention to potholes than it did to the grim and growing crisis in local authority services struggling to keep our children safe from neglect, abuse and harm.
“Frontline staff tell us poverty levels are at the worst they can remember, and councils are being forced to cut the early help services which are the best way to step in and stop children suffering neglect and abuse. Just last week, an official report looking at hundreds of cases where a child died or was seriously harmed, warned that cuts to children’s services are imperilling children.
“The government must take urgent action in the upcoming Spending Review to give councils the funding they need to provide vital services to ensure children with a safe and happy childhood.”
Leonard Cheshire
Gemma Hope, director of policy at Leonard Cheshire said: “To really 'level up' the country, we should be making improvements to sick pay a permanent feature, with clearer protections in terms of disability-related leave and payments that rise in line with the living wage.
“We welcome today’s recognition that statutory sick pay does not work for everyone. With 40% of people likely to be living with a long-term condition by 2030, improving this system is a project that extends well beyond the short term.
“Last year we found that seven in ten disabled workers have left employment due to their disability or health condition. Greater protections for the rights of disabled workers would help to turn this situation around.”
Oxfam
Toni Pearce, head of government relations at Oxfam, said: “This Budget promises to deliver 4,000 miles of roads but offers no route to a zero carbon future. In this key year for action on the climate emergency, the chancellor is tinkering around the edges while delaying the big decisions. The government should show global leadership, as befits the first country to commit to net zero, by putting the UK firmly on track to meet that commitment.
“We welcome the promised investment in green transport and the natural environment, but this Budget was a missed opportunity to show the ambition that is needed to protect people on the front lines of climate change. It offered nothing on much-needed measures to make homes and buildings more energy efficient or to tax the most polluting forms of transport.”
Sense
Sense has published a blog by Richard Kramer, chief executive, calling for the government to deal with the social care crisis.
He wrote: “The social care system was long past reaching crisis point before coronavirus arose and requires both immediate funding and a long-term solution. Repeated cuts in recent years have taken a huge toll on essential services, leaving fewer and fewer people with access to the support they need to live day-to-day.”
Independent Age
Morgan Vine, head of policy and influencing at Independent Age, said: “Older people are among those people most vulnerable to the coronavirus outbreak, yet were all but forgotten in the Chancellor’s speech.
“A COVID-19 response fund is necessary and welcome, but more detail is needed on how it will support local authorities, private care providers, and older people who pay for their own care during this anxious time. Independent Age hears every day from people who rely on the care they receive, for example help with washing, dressing or going to the toilet, whether in their own home or in residential care. This national health crisis has the potential to exacerbate the enormous pressures on social care, and older people will suffer the consequences if the Government does not ensure parity between the NHS and social care.
“This Budget is another missed opportunity to prioritise social care. Older people across the country continue to be let down by a system that is unfair, costly, and inaccessible. It is essential that older people and their families are offered a positive long-term vision for what good care and support looks like. The Government must quickly set out plans to ensure everyone gets the care they need when they need it.”
Alzheimer's Research UK
Samantha Benham-Hermetz, director of policy and public affairs at Alzheimer's Research UK, said: “It’s encouraging to see the government’s promise to boost R&D investment to £22bn a year and target funding to address the challenges of an ageing population. By investing more in this area than ever before, the UK will attract the best scientific minds and continue to be a world-leader in research.
“We welcome this announcement and urge the government to earmark part of this commitment to support efforts to find life-changing treatments for dementia. We are yet to see how and when the government plans to deliver on its election promises for a ‘Dementia Moonshot’. The Conservatives’ pledge to double government funding for dementia research to over £160m a year cannot come soon enough to support dementia research and save people from the fear, harm and heartbreak this condition causes.”
