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Proposals to remove dual regulation attacked

Finance | Gareth Jones | 16 Jun 2009

The Scottish Council for Voluntary Organisations (SCVO) has criticised the Calman Commission on Scottish Devolution, saying its proposals to unify aspects of charity law are “a muddle to fix a muddle”.

Released yesterday, the devolution report entitled Serving Scotland Better: Scotland and the United Kingdom in the 21st Century includes the recommendations that there should be a single definition of ‘charity’ and ‘charitable purpose(s)’ applicable throughout the UK, and that a charity registered in one part of the UK should be able to operate in another without having to register with the other part’s regulator.

SCVO says the changes will create new complications rather than dealing with the problems identified, and that the role of the Inland Revenue and the operation of gift aid have not been properly addressed.

The body also argues that Scotland’s stronger and more rigorous definition of public benefit should be preserved as it reflects “the distinct traditions and history of charity in Scotland from England & Wales”.

Scottish act “must be respected”

Lucy McTernan (pictured), deputy chief executive of SCVO, said she would welcome greater discussion of charity law between Westminster and Holyrood, but that the views of the Scottish public, and as such the recent “widely supported” Scottish Charities Act, must be respected.

“There are minor complications that arise from the different systems of registration of charities north and south of the border. There are more serious anomalies in the way the Inland Revenue views charities across the UK.

“Unfortunately what the Calman Commission is proposing is a muddle to fix this muddle, rather than making things clearer.”

She added: “What's vital in this debate is that public have faith in the legal status of charities, and it reflects their understanding of what charities should be.” 

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