IMPACT OF VAT ON THE VOLUNTARY SECTOR

Early day motion 552, tabled 21 January 2003 by Bob Russell (Liberal Democrat). Signed by 169 members.

That this House values the wide range of work and activities undertaken by charities, including those involved in hospice care, care of the elderly and youth and sports organisations; welcomes the statement in the Treasury Cross Cutting Review into the Role of the Voluntary and Community Sector in Service Delivery that the voluntary and community sector organisations have a crucial role to play in the reform of public services and reinvigoration of civic life; notes, however, that irrecoverable Value Added Tax has a massive impact on the ability of charities to achieve their objectives and help to deliver essential services; further notes that the irrecoverable VAT burden on charities is estimated to be at least ú400 million per year and that the increase in National Insurance contributions from April is estimated to cost charities a further ú50 million per year; and calls on the Government, as a priority, to introduce measures to reduce or remove this crippling financial burden on charities.

Signatures by party: Labour 76, Liberal Democrat 41, Conservative 31, Labour/Co-operative 8, Plaid Cymru 4, DUP 3, UUP 3, Scottish National Party 2, Independent 1.