A group of MPs has called on the government to review the Charity Commission’s budget settlement, expressing concerns that the Commission’s 27 per cent reduction in budget will impact on its ability to regulate and investigate fraud effectively.

Louise Ellman, Labour MP for Liverpool Riverside, voiced the concerns in an Early Day Motion yesterday which criticised the potential loss of 203 jobs at the Charity Commission.

Ellman also said she was alarmed at cuts to the Commission at a time when the role of charities will be hugely expanded and highlighted the potential negative impact on preventing charity fraud:

“Fraud in the charity sector is estimated to be £100m annually,” she said, “I am deeply concerned at the impact further reductions in staff and resources will have on allegations of charitable funds being diverted to organisations with links of terrorism.”

The EDM has been signed by seven MPs so far.