Minister's gift aid comments 'worrying'

Fundraising | Tania Mason | 1 Nov 2009

Angela Smith did not deny that the government was considering scrapping gift aid relief for higher-rate taxpayers after being challenged about it by her Conservative counterpart Nick Hurd in a Commons debate last week.

She also blamed the lack of progress on changes to the gift aid system on charities, saying there was no consensus in the sector about the best way forward.

In a debate about the effects of the recession on the sector, Hurd told Smith that “after two years of consultation we are still no clearer about government plans to make gift aid easier and more effective”.

“Instead,” he said, “we are now getting signals from private meetings that the Treasury acutally wants to scrap tax reliefs for higher-rate payers who give to charity.”

Smith’s next comments ignored this charge. She simply said: “This government have a proud record on gift aid, and several changes have been brought in.”

She went on to say: “I understand the frustration of some charities that want to see change more quickly, particularly on the issue of higher rates, but the problem is that there is not agreement among the charities themselves about the best way forward. We are in talks with the Treasury about how best to address the matter.”

Scrapping the higher-rate relief is believed to be one option being considered by the government as they decide what changes to announce to gift aid in the pre-budget report expected later this month or next.

Institute of Fundraising chief executive Lindsay Boswell said the minister’s comments were worrying. “It sets alarm bells ringing that she didn’t instantly refute the suggestion that those reliefs would be scrapped.

“And it rings more alarm bells that she is trying to portray the sector as more divided than it is. It is quite easy in any area of policy to find somebody who has a different perspective. The sector will never be totally united on any issue – there are 190,000 charities, they will never all agree on everything, but on gift aid this sector is as united as a sector will ever get."

Directory: Institute of Fundraising
Who's Who: Angela Smith | Tania Mason | Nick Hurd | Lindsay Boswell

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