Iain Stewart
Main Page: Iain Stewart (Conservative - Milton Keynes South)Department Debates - View all Iain Stewart's debates with the HM Treasury
(11 years, 11 months ago)
Commons ChamberI am delighted to have an opportunity to contribute to what I think has been a measured and constructive debate. I, too, welcome the Bill as a sensible complement to the gift aid scheme, which has operated successfully for many years.
Like most other Members, I find that one of the most pleasurable aspects of my constituency role is visiting local charities and observing the valuable work they do in the community, often supporting the most vulnerable members of society. Like the hon. Member for Banff and Buchan (Dr Whiteford), I think that we should take this opportunity to record our deep gratitude for all their work, and our gratitude to the thousands of volunteers who willingly give their time and money to make such a difference.
My constituency in Milton Keynes is blessed with a deeply philanthropic culture. We have nearly 400 registered charities, and more than 1,100 voluntary and community groups. Thousands of residents devote a huge amount of time and money to working directly on projects or supporting the various fundraising activities. I do not wish to detract from the work that large charities do, but small community organisations often have a disproportionate impact. They make a huge contribution locally, although they have very modest incomes: less than £10,000 in some instances, as was pointed out by my hon. Friend the Member for Dartford (Gareth Johnson).
When I was preparing for the debate, I contacted Community Action Milton Keynes, a fine organisation that gives practical support to local charities and other groups by helping them to manage or develop their operations. I was told that 62% of its members had an annual turnover of less than £10,000. Such charities do not have the wherewithal to employ staff to help them to deal with the complexities of gift aid or other schemes; they rely entirely on people who give up their time to help them with their administration. I think that the Bill will benefit those groups in particular. As well as providing extra income—an organisation with a turnover of less than £10,000 could receive an extra 10% each year—it will reduce the amount of time that volunteers must devote to administration, so that they can spend more time doing the good work that charities are there to do.
Let me give two examples of the benefits that the Bill will provide, one from my local area and one relating to a family connection. A constituent of mine, Dave Hand, undertook a sponsored walk from his old Army base in Somerset to Milton Keynes to raise money for a wonderful charity called BLESMA—the British Limbless Ex-Service Men’s Association. He raised about £2,000, the majority coming from donations made on the JustGiving website and similar online sources. However, he also raised a substantial sum at the pubs he visited en route—people would put cash in his bucket—and that cannot easily be traced back for the purposes of gift aid. The extra cash involved would not be a vast sum, but it would provide an extra bit of support to the charity, which could then use every single penny of the donations it receives. That example highlights one of the ways in which the Bill will be of real benefit.
The other example I want to raise is a family affair. About 25 years ago, my father set up a talking newspaper charity in his hometown of Hamilton. It was established to address a local need, by putting the contents of the local newspaper on to a cassette that could then be sent to local blind and visually impaired people. It is a very small organisation that relies entirely on volunteers. If it raises £1,000 a year, it is doing well, but it has very low operating costs. Those who donate to it are often the listeners. It is a free service, but they do so out of gratitude. They might send in £5 or £10 to help the organisation carry on. These are people with visual impairments and many of them are elderly, so they are not the kind of people who generally fill out gift aid forms. By addressing this point, the Bill’s provisions would add significantly to the income of such charities.
That example also serves to flag up a concern, however. I do not know whether the charity my father set up, Hamilton Sound, has ever claimed gift aid, but I suspect that it has not. Therefore, it would not be able to take advantage of the proposed scheme for three years. I ask the Minister to explore ways in which charities that are clearly bona fide—that might have been around for many years, but may not have technically qualified for gift aid payments—may take advantage of this scheme. We surely have the wherewithal to devise a scheme to address that. I completely accept the need to guard against fraud, but there is a balance to be struck here: we must not create a system that is so onerous and overly complex that the potential benefits cannot be realised.
I hope there will be an evolutionary process in respect of the Bill’s provisions. My hon. Friend the Member for Harwich and North Essex (Mr Jenkin) suggested they should be reviewed after a reasonable period, and I urge the Government to do that. It is a good Bill, however, and I am sure it will make a real difference.
There is support across the House for the principle of the Bill. I hope that our discussions in Committee will be as constructive as today’s debate, and that we will thereby address the details of the provisions so as to ensure they truly deliver for all charities, which we rely on so much in our communities.