Sector leaders have welcomed Chancellor George Osborne’s Budget announcement that the government will extend a VAT refund scheme to blood bike charities.
The announcement follows pre-Budget calls from sector leaders for a wider discussion of irrecoverable VAT.
VAT rebates for hospices, search and rescue charities, and air ambulances were introduced in last year's Autumn Statement but earlier this month leaders from six charity umbrella bodies called on Osborne to use the Budget to extend the scheme to the whole sector, at a cost of £1.5bn.
In today’s budget speech, Osborne said the extension to blood bike charities - volunteers who deliver blood by motorbike in emergencies - was a response "to the public campaign".
Commenting on today’s Budget measures, John Low, chief executive of Charities Aid Foundation (CAF), said: "Movement, after so much lobbying on irrecoverable VAT, is welcome for the vital charities that will benefit, and a chink of light for the sector as a whole.”
Civil Society News understands the value of the rebates is around £35m a year, although its extension to blood bike charities is only what the Treasury describes as a "negligible" addition.
John Hemming chair of the Charity Tax Group said today’s Budget painted an “overall positive” picture for charities.
“We are particularly pleased that there will be a further VAT refund scheme for another part of the charity sector – blood bike charities – which builds on the refund scheme for search and rescue charities and hospices which will come into effect on 1 April 2015.
“CTG has been heavily involved in campaigning for VAT refunds for charities and is delighted that an important precedent has now been set for wider refund schemes for the sector.”
John Stepney, chair of the Nationwide Association of Blood Bikes, told Civil Society News: “We are delighted that the Chancellor has extended the VAT refund scheme to the blood bike charity groups.
"This decision is a reflection of the positive impact the blood bike volunteers across the country have had over the years and underpins the recognition of the professional level of service that is provided free of charge to NHS hospitals.
"Rest assured that the potential recovery of up to £400,000 per annum will be reinvested back into delivering and expanding the current blood bike service offering to the NHS."
