The Government's Comprehensive Spending Review: Charities

Charities are likely to be affected by the government's recent Comprehensive Spending Review (CSR), according to the Charity Commission, which estimates that billions of pounds might be lost in the short-term through cutbacks by local authorities. Local authorities, which currently provide around £6.6 billion a year to the third sector, will see their funding cut by 7.1% each year until 2014/15.

The chairman of the Charity Commission, Suzi Leather, accused the Prime Minister of "cutting our ability to help each other" Her reaction highlights the widening ideological divide between the Commission and the Coalition government, whose 'Big Society' project will try to encourage voluntary groups to take a greater share of responsibility without State influence. To help achieve this, the Cabinet Office has announced a £100 million transitional fund, primarily for small charitable organisations which rely on the government for more than 30% of their funding.

The ramifications of the CSR and government policy generally will form the basis for the next Mishcon Charitable forum on Monday 8th November.

For more information, please contact Richard Sims.