Tomorrow the Chancellor will announce the Budget. David Ainsworth looks at what the sector can expect to see.

Tomorrow, as you’re probably aware, the Chancellor will stand up and deliver the Budget.

There are a number of potential areas we can expect announcements.

Social investment tax relief: The rate favoured by Big Society Capital is 30 per cent, and the Treasury seems well-disposed towards this. But it hasn’t been finalised.

Gift aid: The Treasury published a consultation called Gift Aid and Digital Giving last year, which included proposals to allow donors to make “one gift aid declaration to cover all their donations to all charities made through a specific intermediary”. The government has also looked into the idea of a gift aid database, and has said it will look at promotional materials to increase the take-up of gift aid. We could see further progress on any of these.

A £40m fund for struggling charities: The cat’s already part-way out of the bag on this one. Nick Hurd has already confirmed he’s won some cash from the Treasury to support charities that have good long-term prospects but are low on reserves after the recession. He’s said he’s hoping for £40m, and he must be pretty confident or he wouldn’t have said it, but it could well be confirmed in the Budget.

It’s a good idea, but it’s worth remembering that £40m won’t go very far in a sector with a turnover of tens of billions.

A definition of charity for tax purposes: Following the scandal of the Cup Trust, a tax-avoidance scheme involving charity, the government has committed to legislating to make it more difficult to use a charity to avoid tax. The sector bodies with the most expertise aren’t keen on the proposals currently on the table, outlined last week by HM Revenue & Customs in a discussion document.

There probably won’t be much in the Budget to move this forward, but there could be a sign of the government’s continued commitment to this idea.

There seems to be some feeling in the sector that these rules are a bad idea. It’s worth remembering that the Cup Trust did not succeed in making off with any tax relief, and the existing rules worked OK. It was their implementation, rather than their intent, that was flawed.

So this proposal seems unnecessary. It’s like nailing the stable door shut after the horse stayed put.

Payroll giving: The government will introduce rules to speed up the process for charities to get the money that’s donated. This is welcome, but a lot of those involved in payroll giving feel more needs to be done if it is to be a success.

Procurement reform: There are also likely to be steps to simplify and improve government procurement for small businesses. This won’t be aimed at the charity sector, but it could help charities considerably, nonetheless.

Something unexpected: For those who’ve followed sector finance over the years, Budget day has traditionally been a day of surprises. As often as not, the major measure which affects charities comes right out of the left field. Whether it’s a raft of new measures to encourage giving, or a philanthropy tax which threatens to nobble major giving, it’s often not on anyone’s radar.

Often it’s supposed to be nothing to do with charities, and no one’s given any thought at all to the effect on the sector. Often that’s why it’s an issue. Often it feels as if it’s been cooked up by two men, in a room deep in the Treasury with little natural light. So expect the unexpected.