HM Treasury has agreed to defer for a year the implementation of the international accounting standard that threatened to see donations to NHS charities lumped in to general NHS balance sheets.

Following concerted lobbying by the Association of NHS Charities, the Charity Commission and others, the Treasury agreed to postpone implementing the new standard for a year so it can review the accounting treatment of the trusteeship of NHS charities within the context of the government accounting framework.

The Charity Commission welcomed the news, as did Jenny Willott, LibDem charities spokeswoman who led the campaign against the changes in parliament.

She said: “This climb-down is extremely welcome and a victory for common sense. After 18 months of burying their head in the sand, the government seems to be finally listening.

“Consolidating charitable funds into the accounts of NHS bodies would have completely undermined the independence of those charities and the confidence of donors. What’s more it would have left the door-wide open for potential manipulation of NHS budgets.”

The Charity Commission said its position remains that consolidating NHS charities into the accounts of a public body is inconsistent with their independence. "We welcome the fact our concerns have been recognised."

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