In Parliament
Jessica Questions PM about support for Charities 28 March 2008
Jessica raises support for Charities at Prime Ministers Questions
Jessica asked the following question during PMQs on Wednesday 19th March.
Jessica Morden (Newport, East) (Lab): Gift aid makes a genuine difference to many charities, which will welcome the transitional measures that were announced last week in the Budget to help soften the blow caused by the reduction of the basic rate of income tax. Will the Prime Minister reassure charities in my constituency that there is a long-term plan, past the three years referred to, to ensure that there is no reduction in income and that we can drive up levels of giving through gift aid?
The Prime Minister: I am grateful to my hon. Friend. We provided £100 million a year as transitional support for those who receive gift aid relief as charities to enable them to deal with the consequences of reducing the basic rate from 22p to 20p. We have also introduced several other measures, such as a comprehensive programme for bringing additional smaller charities into gift aid and outreach to many new charities to help them use gift aid to advantage. Of course, in the past few years, the amount of tax relief available to charities has risen from £1.9 billion to £2.9 billion. That is £1 billion extra through tax relief going to the charities of this country. That would not have been possible without proper economic policies that were working for the people of Britain.