Last week’s election of a new Labour government, led by the country’s new PM Keir Starmer, is still fresh on everybody’s mind. Like with most, we are curious to see what the party has planned for the charity and not-for-profit sectors. With a fresh leader and party at the helm, there are bound to be changes and new initiatives introduced to boost charities and not-for-profits. Our new government has already shown that they will devote a strong focus on social justice, economic reform and community empowerment. Their stance on charities reflects their broader objectives of fostering a fair and equitable society. Here are the key policies and positions concerning charities, gleaned from their manifesto and press coverage during the election campaign:
Financial support and funding
- Increased funding for charities: The government has committed to increasing financial support for charities, particularly those addressing poverty, homelessness and social inequality.
- Grant simplification: The party has pledged to introduce simplified grant application processes to reduce the administrative burden on small and medium-sized charities.
Regulation and oversight
- Strengthened regulation: Labour has already expressed plans to enhance the regulatory framework for charities to ensure transparency, accountability and proper use of funds.
- Charity Commission: The government has committed to providing the Charity Commission with greater resources and authority to monitor and support charitable activities.
Partnerships and collaboration
- Public-private partnerships: It is part of Labour’s mission to encourage partnerships between charities, businesses and government bodies to leverage resources and expertise for greater social impact.
- Community initiatives: Community-led initiatives remain central to the party through collaborative efforts with local charities to address specific local needs.
Tax relief and VAT
- Tax relief: The pledge to expand tax relief measures for charitable donations will encourage more significant contributions from individuals and corporations.
- Gift Aid promotion: Labour’s increased promotion and simplification of the Gift Aid scheme to maximise the benefit of donations.
- VAT on school fees: With the imposition of VAT on school fees, and with most independent schools being charities, many families who currently make sacrifices to pay school fees will no longer be able to afford to go and will become dependant on the state bringing extra pressure on an already struggling sector. The Independent Schools will have to look for overseas students to survive or will be forced to close with resulting job losses.
Innovation and capacity building
- Support for innovation: Providing grants and support for innovative charitable projects, particularly those using technology to solve social issues.
- Capacity building programs: Offering training and development programs for charity leaders to enhance their operational capabilities and impact.
Social enterprise and volunteering
- Promotion of social enterprises: Supporting the growth of social enterprises as a means to combine business efficiency with social goals.
- Volunteering initiatives: Launching national campaigns to boost volunteerism, recognising the vital role volunteers play in the charitable sector.
Advocacy and influence
- Charities as stakeholders: Labour has advocated for the independence of charities and their right to campaign, even when such campaigns are critical of the government. This stance is reflected in their commitment to involving charities as stakeholders in policy-making processes, ensuring that the insights and experiences of these organisations inform government decisions.
- Public awareness campaigns: Running public campaigns to raise awareness of the importance of charitable work and encourage public support.
Digital transformation
- Digital infrastructure: Investing in digital infrastructure to help charities modernise their operations and improve their outreach and service delivery.
- Online fundraising platforms: Promoting the use of online platforms for fundraising efforts.
Accountability and transparency
- Impact measurement: Encouraging charities to adopt robust impact measurement tools to demonstrate the effectiveness of their programs.
- Transparent reporting: Mandating transparent reporting practices to build trust with donors and the public.
To conclude, Labour’s policies towards charities reflect a holistic approach to fostering a vibrant and effective charitable sector. By focusing on increased funding, better regulation, enhanced partnerships, and support for innovation, the government aims to empower charities to address societal challenges more effectively and sustainably. These initiatives underline the government's commitment to building a fairer and more inclusive society through active support and collaboration with the charitable sector and so we hope they are delivered and can be afforded. We look forward to the development of further policies and initiatives that will greatly impact the charity sector and give it the support it so rightly deserves.
The next step
Should you have any charity-related questions, please contact Charles Homan on c.homan@uhy-uk.com or your local UHY adviser.
