The chair of the All-Party Parliamentary Group on Philanthropy and Social Investment has called on the government to introduce a “Gift Aid emergency relief package” to help struggling voluntary sector organisations.
Rushanara Ali, the Labour MP for Bethnal Green & Bow, says in a letter to the Chancellor of the Exchequer, Rishi Sunak, that charities, voluntary organisations and social enterprises have played a central role in the UK’s response to the coronavirus pandemic.
But she says that “many of these organisations face major funding challenges, and without urgent government support they are likely to go bust through no fault of their own”.
In the letter Ali asks that the government urgently implement the following proposals before the Spring Budget next week, including “a Gift Aid emergency relief package”.
It says: “The Charity Finance Group estimates that changing the effective tax rate for Gift Aid to 25 per cent would be worth roughly £360m."
The letter also calls for measures including further support for the sector at the end of the government’s Coronavirus Job Retention Scheme, which is due to close at the end of April, and an extension of social investment tax relief, which is due to come to an end in the same month.
Charities have played a key role in the response to the COVID-19 pandemic. Many are now in need of support. As Chair of the APPG on Philanthropy and Social Investment, I have written to @RishiSunak, urging him to provide additional funding to the sector in his budget statement. pic.twitter.com/BpAUYYZPRQ— Rushanara Ali ?? (@rushanaraali) February 23, 2021
The Spring Budget is due to take place on Wednesday 3 March.