Charities: VAT

Debate between Baroness Royall of Blaisdon and Lord Sassoon

Thursday 13th January 2011 Lords Chamber

[Baroness Royall of Blaisdon]

To ask Her Majesty’s Government what steps they will take to allow Sue Ryder Care and other charities to recover VAT in the same way as other bodies providing public services.

[The Commercial Secretary to the Treasury (Lord Sassoon)]

My Lords, although local authorities, government departments, the NHS and certain other public bodies incur irrecoverable VAT, just as many charities do, on certain of their activities, it is the case that a small number of VAT refund schemes operate in the public sector. Charities already benefit from a range of tax reliefs and it is not proposed to introduce any general VAT recovery scheme for the sector.

[Baroness Royall of Blaisdon]

My Lords, I thank the noble Lord for his Answer and for the information that he provides. I understand that this is a long-standing problem, but it has been exacerbated by the rise in VAT to 20 per cent. Does the noble Lord agree that in the context of charities such as the excellent Sue Ryder Care, whose centre in Leckhampton I know well, being asked to provide additional public services as part of the big society initiative, some solution should be found to ensure that there is a level playing field between charities, local authorities and the NHS, when all are delivering the same or similar public services?

[Lord Sassoon]

My Lords, I certainly take the opportunity to commend the work that Sue Ryder and many other charities do. They are facing a tough time, as are many parts of society. We find ourselves in the regrettable situation that charities will be bearing the additional VAT. The whole of society is bearing the burden of the difficult decisions on deficit reduction. The charitable sector of course benefits from significant VAT and other tax reductions and exemptions to the tune of £3 billion a year. The question of a level playing field is important, but it is of a level playing field with the public sector, which itself cannot recover all its VAT. For example, in the National Health Service, only about 20 per cent of the irrecoverable VAT is refunded, and only on outsourced services. Equally, we must remember that there are commercial providers of social care and other services who would be disadvantaged if there was a special scheme for charities.

Comprehensive Spending Review

Debate between Baroness Royall of Blaisdon and Lord Sassoon

Monday 1st November 2010 Lords Chamber

[Lord Sassoon]

My Lords, I have got all night. I am very grateful to my noble friend. It is late, and we will have an opportunity to come back to these matters again. Specific funding for 16 to 19 year-old learning will be announced in the statement of priorities for the Department for Education later this year, so we will have opportunities to come back to that.

I move on briefly to one or two further points on reforms to our public services. We will leave no stone unturned in our search for waste, while we devolve power and funding away from Whitehall. I was very struck by the contributions by my noble friends Lady Browning and Lord Newby, who reminded us just how much more we can get from Government by better procurement and cutting waste. It is in those ways that we will be able to target expenditure going forward on those who need it—whether that is for 16 to 19 year-old education or those with disabilities. We have to remember at all times that the attack on waste continues to be a high priority.

Rightly, concerns have been expressed about the transitional effects of the job losses from the public sector. The Government are also very concerned about easing the transition, which is why we have announced the initiative such as the £1.4 billion regional growth fund.

I conclude today’s debate by saying that the decisions that we have taken have restored credibility to our public finances and stability to our economy. When we came to power, this coalition Government did face the worse economic inheritance in modern history. We have had to make tough choices—

[Baroness Royall of Blaisdon]

My Lords, the House will forgive me for delaying the Minister once more, but I thought that the noble Lord, Lord Shipley, and others raised incredibly important issues to do with local government funding in the forthcoming year. Would the Minister care to reflect or answer those questions?

Economy: Spending Cuts

Debate between Baroness Royall of Blaisdon and Lord Sassoon

Wednesday 6th October 2010 Lords Chamber

[Baroness Royall of Blaisdon]

To ask Her Majesty’s Government how they have complied with the legal requirement to assess the impact of spending cuts on women, disabled people and ethnic minorities.

[The Commercial Secretary to the Treasury (Lord Sassoon)]

My Lords, all government departments will ensure that they take account of the impact of reductions in their spending on women, disabled people and people from ethnic minorities, in line with their legal obligations. For areas for which the Treasury has direct responsibility, work is under way to ensure that any relevant impacts are considered before decisions are taken. The Treasury will also be mindful of the overall impact on equalities of the high-level decisions that will be taken in the spending review.

[Baroness Royall of Blaisdon]

My Lords, it is very welcome news that the Treasury and other departments will ensure that an assessment of the impact on these groups is made before the CSR, but what evidence is there that an assessment took place before the emergency Budget on 22 June? A lot of vulnerable people, including many women, people from ethnic minorities and disabled people, have been hit very hard by the decisions that were taken on that date.

[Lord Sassoon]

My Lords, as I am sure the noble Baroness is aware, there is a regulator, the Equality and Human Rights Commission, in this area. If it has any doubts about whether government departments have followed their duties under the relevant legislation, it is up to it to take appropriate action.