Charity Commission budget will fall by more than a quarter over four years

Chancellor's comprehensive spending review means business as usual is "simply not an option," says Dame Suzi Leather

Charity Commission
Charity Commission

The Charity Commission’s budget will be cut by more than a quarter over the next four years, according to figures released in the comprehensive spending review.

The commission, which has a budget of £29.3m in the current financial year, said it would have to make the equivalent of 140 full-time staff redundant as a result of the cuts, which will reduce the regulator’s budget to £21.3m by 2014/15.

The commission’s budget will be £26.5m in 2011/12, £25.7m in 2012/13, £22m in the year 2013/14 and £21.3m in 2014/15.

The commission also has a budget for capital expenditure of £700,000, which will be cut to an annual figure of about £400,000 from next year.

The commission will announce final decisions on how to manage the cuts after a strategic review, which it is aiming to finish by next April. It will begin a public consultation on the review in the next few days.

Dame Suzi Leather, chair of the commission, said: "This is without a doubt an extremely challenging settlement for the Charity Commission, and naturally we are disappointed.

"Clearly a very different approach is now needed – business as usual is simply not an option.

"We will need to make significant changes to the way in which we engage with charities and the public, the services we offer and the scope and shape of our regulatory activity."

Sam Younger, the commission’s new chief executive, said last month that the commission’s most critical work was maintaining the register of charities, investigating complaints and carrying out compliance work. But he said that compliance work might be reduced in scale.

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