Effects of Brexit on the sector lie in the long term, NCVO warns

A briefing paper published today says the short-term effects are likely to be overestimated, but the long-term effects underestimated

NCVO: briefing
NCVO: briefing

The National Council for Voluntary Organisations has warned that the financial implications of the UK’s Brexit vote will affect the voluntary sector more in the long term than in the immediate future.

The stock market and the value of sterling tumbled as the result of last week’s referendum on the UK’s membership of the EU became clear.

In a briefing published this morning, the NCVO warned that the impact of Brexit on the voluntary sector in the short term would probably be overestimated, but the long-term impact would be likely to be underestimated.

It says that short-term hits to charities’ income are unlikely, but more likely in the long term.

The briefing says Brexit might result in reduced income for the sector because grant-making foundations rely on investment income.

It also predicts that the government will maintain EU regulation for at least the next two years and probably for much longer.

The paper says that there is likely to be a slowdown in wider government business for months if not years, meaning there will be less progress on charities’ policy areas.

And it calls on charities and community groups to consider their role in "healing divisive referendum campaign wounds".

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