Welsh government recommendations to reduce the business rate relief available to charities in Wales will have a severe and negative impact, not only on the charity sector, but also on the Welsh economy, environment and its communities, says Martin Price, Institute of Fundraising Cymru Chair in a letter to the First Minister, Carwyn Jones.
The recommendations made in an independent report based on the results of a consultation last year present a grave concern for the future of charities in Wales. We are particularly worried about proposals such as the introduction of new thresholds for charity shop rate relief. We believe they will have severe consequences, and it’s unclear how the measures will increase diversity on the Welsh high street.
Cutting the mandatory rate relief for charities from 80 per cent to 50 per cent will have a devastating impact on the income of charities and threaten the viability of many high-street shops.
That’s why we are urging the Welsh government to listen to charities and sector bodies and to consider carefully the impact that these proposals will have – and, most importantly, to reconsider the changes to charity business rate relief before it’s too late. We are consulting IoF members in Wales and plan to respond formally to the Welsh government consultation on the proposals shortly.
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