The quiet that comes before the storm is not so quiet this time round. The coalition government headed by David Cameron announced the country’s emergency budget measures on June 22 and families, companies and charities all have something to say. Britain was hit hard by the global credit crunch because of its huge financial sector. The European Union warns that its deficit may reach 12% of GDP this year, four times the amount considered acceptable by the bloc and debt is expected to soar to 88% in 2011 or 2012. The conservatives have promised to cut debt and “get the country back open for business” but consumers have already stopped buying and charities have already started lobbying. First in line is the Charity Tax Group, which Third Sector magazine reports as already lobbying the Chancellor of the Exchequer George Osborne for charities to be exempt from any VAT rises. “It seems strange that while the government is proposing to more with charities it would levy a tax that would mean they would be able to do less”, says Peter Jenkins, a technical adviser to the charity.
Voices from the field:
“We don’t yet have the full picture”, says Mike Locke, Director of Public Affairs at Volunteering England, a charity committed to the development of volunteering across the UK, but the obvious scenario is one that sees public agencies reducing their grants to voluntary organisations at a time when the demands on them are likely to increase. On the up side, he says, some organisations may grow as they on take on contracts from public agencies which are scaling down. Read the full interview here
Steve Day, 59, is co founder of two social enterprises working in the field of service design and delivery in the North of England, has a different take on the crisis. In his view less is not only more but better: “If you had a million pounds you might go out and buy a Maserati but if you had only 10 pounds you would have to get a bicycle. Now which one is better for you and the planet?”. Read the full interview here
For updates on civil society news through the spending cuts visit: www.cutswatch.org.uk
