Ecclesiastical Insurance and the Charity Finance Group (CFG) are once again calling on the Chancellor of the Exchequer, Rishi Sunak – who is making the next Budget statement to the House of Commons on March 03 – to grant charities an exemption from Insurance Premium Tax (IPT).
“The charity sector has constantly stepped up to support those most in need and has worked tirelessly in our communities throughout the pandemic,” asserted Ecclesiastical charity director Angus Roy, who cited the negative repercussion that IPT is having on the work that charities do.
“The money saved by not paying IPT would free up vital funding and help contribute to increasing their impact.”
Roy, whose camp insures more than 45,000 charities and not-for-profit organisations in the UK, pointed to the “perfect storm” of a loss of funding through fundraising activities and an increase in need. The Ecclesiastical executive said this has left many charities at crisis point.
He added: “At the same time we urge the government to do more to support the charity sector – and that is why Ecclesiastical is lending its backing to the Budget submission the CFG has made, in conjunction with the Charity Tax Group, to the government calling for more support for the sector.”
An Ecclesiastical poll among 250 charities found that 72% are concerned about funding as a result of COVID-19, while 32% are worried about existing beyond the pandemic.
“Against a backdrop of increasing demand and reduced capacity to deliver services, the elongated nature of this crisis means that any additional tax burden on charities will mean their ability to help those most in need will be in jeopardy,” stated CFG policy manager Richard Sagar ahead of Budget 2021.
“With renewed pressure on the Chancellor to increase so-called ‘stealth taxes’ to help raise revenue, Charity Finance Group is calling for charities to be exempt from Insurance Premium Tax, and at a minimum for no further increases.”
The CFG, as previously noted, also wants Sunak to deliver a renewed package of dedicated support measures for charity and social change organisations.
