Small Charitable Donations and Childcare Payments Bill

Michael Tomlinson Excerpts

2nd reading: House of Commons & Money resolution: House of Commons & Programme motion: House of Commons
Tuesday 11th October 2016 Commons Chamber

[James Duddridge]

I thank my hon. Friend for that; perhaps he will take this as a complaint from a humble member of the public. If he joined me in trying to get from Fenchurch Street station to Tower Hill in the morning, on the way to the House of Commons, he would see not only the appalling works and the way people are funnelled through, but that the number of charities operating there creates a physical boundary between the two stations, which is a real problem for commuters who otherwise would donate. There are quite a few instances when I have felt less positive about charities, which I am naturally passionate about. I thank my hon. Friend for highlighting the work. Perhaps I could review what has been done while I was looking at other things since 2006, and also perhaps invite him for a cup of coffee on the corner of Fenchurch Street to meet some of my constituents coming into London and encountering the problem.

We are debating the “Small Charitable Donations” Bill, but I am not quite sure what “small” is. A Southend charity set up by Charles Latham and Howard Briggs has looked to provide a capital amount that could be used to provide small loans to micro-opportunities—non-charities but, in some cases, registered charities as well. That developed from a level of £60,000 or £80,000 to become a £1 million or £2 million fund. Even at that level, it considers itself small and has to do all its fund management via the Essex fund. My constituency predecessor, Sir Teddy Taylor, is involved in that fund. It deals with small charities, but I am not sure that it would be helped by the definition of small charities in the Bill.

I am generally a believer in small being beautiful—my wife is very petite—and in relation to charities, the closer the charity stays to an individual cause, the better. The shovels example is, I think, great. Southend’s charity that wants to do some something for targeted HIV/AIDS patients within a certain age category is another fabulous example. There are, however, some bigger charities—I am not going to name them; they do good work—that have somewhat lost their way. These are the ones that we see on the back pages of The Guardian, in case any of my hon. Friends sully themselves with such things—they are very good for the fireplace. We can often find a job with such a charity paying significantly more than an MP’s salary—shock, horror. This could be running a charity, or doing a junior, second-tier director job, but, as I say, small is beautiful and the more we can help small charities with the sort of provisions in the Bill, the better. At the moment, there is a flight for merging charities, meaning that charities get much bigger. When they do, I fear they move too far away from their communities. We should encourage those charities to stay small but numerous.

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

My hon. Friend is making an amusing but serious point. If I am fortunate enough to catch your eye, Mr Deputy Speaker, I, too, will mention some charities in my constituency. When it comes to small charities, does my hon. Friend agree that many of them are struggling at the moment, and that the measures in the Bill will give them boost, especially if we help to publicise them?

[James Duddridge]

I entirely agree with my hon. Friend that some charities are struggling and that there is a constant shift in funding. I remind Southend charities not to believe all the doom and gloom that was talked pre-Brexit. We are still growing strongly; we are the strongest-growing economy in the G7. Rather than squirreling away money for the rainy day that might come, we should encourage people to spend, enjoy and donate some of that money to charities. The Bill’s measures should allow more of such money to come back to charities.

In common with previous speakers, I should like to mention a charity with which I was involved, although I did not start it up. I was appointed by a charity known as the Bulldog Trust, which is based just down the road from here. Its website said that it was a philanthropy organisation. I thought that it was no good for me because I do not have any significant cash to give to it—it would certainly be a £20 donation from me rather than a £20 million donation—but what this charity does is to link up people who have a skill and want to use it within a charitable organisation. That sent me to the Grow Movement, which at that time was a charity operating in Uganda, Rwanda and Malawi.

I mention that example because I am a little unclear about what happens when a charity such as the Grow Movement is UK based but international. Of the trustees, I think I was the only one domiciled in the UK; it has an international virtual board. We need to make sure that small sums, wherever they might come from, can go to such organisations. At one time it was inconceivable that someone would send a few quid from France or the United States, but now, because of the way the internet is set up, when we purchase something we are quite often asked to “click here” to enable an extra £2 to go to a charity. I urge the Minister to review the position and ensure that charities like the Grow Movement can benefit from this and future legislation.

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[James Duddridge]

Another point is that charitable giving then begins to be inculcated in young people in particular. Their small donations, to both small and big charities, bring them into the system. Certainly, when I see someone under the age of 16 collecting for poppies or Help for Heroes, I feel that the future of the country is in safe hands.

I intervened on the Minister to ask about deeming all donations tax-free. I am sympathetic to Her Majesty’s Opposition’s points about complexity. The points have been made well today, just as they were three years ago, as Opposition Front-Bench Members pointed out. The sooner we can get through all this complexity and decide that the basic rate of tax should come back from all moneys en bloc that are given to charities in small amounts, the better. I will say more about how we define “small amounts” later.

I shall turn now to the specifics of the Bill. Clause 2 deals with the meaning of the term “small donation”, and subsection (3) refers to the United Kingdom. However, clause 6, which deals with the extent of the Bill, refers to England and Wales, Scotland and Northern Ireland. Forgive me if I am being stupid, Mr Deputy Speaker, but I think that they amount to the same thing. I would be grateful if that provision could be amended, if only as a tidying-up exercise, or if the difference could be explained.

[Michael Tomlinson]

Before my hon. Friend moves on from the question of cash amounts, does he agree that £20 is a sensible figure? Opting for a larger amount could involve a risk of fraud or misuse, but £20 is still a substantial enough amount to make a significant difference.

[James Duddridge]

I do not know how to say this gently—no, I do not think that that is a sensible amount. I understand what my hon. Friend is saying, but I think that that is an arbitrary amount. Why not choose £10 or £25? Is it because we have £20 notes but not £25 notes? I worry when I see legislation that cites numbers but makes no provision whatever to take account of inflation. Would such an amount be uprated annually? If that is the case, we would end up with odd numbers in subsequent years. Alternatively, should we let things drift and conduct a review every five years, and then put the amount up by 25%? I would like the figure to be set an awful lot higher.

[Michael Tomlinson]

I am grateful to my hon. Friend for being patient about this point. Can he not see that the amount could be reviewed over a number of years? In fact, it has been reviewed in that way in the past, and there will doubtless be opportunities for it to be reviewed again in the future, if not by this place, perhaps through an order to be dealt with by the Minister. Would that not be a sensible approach?

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[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

It is a great pleasure to follow my hon. Friend the Member for North East Hampshire (Mr Jayawardena), who made some excellent points with his customary eloquence. I agree with what he said.

Today’s debate gives me an opportunity to showcase one or two examples of charitable works in Dorset that go particularly well. I will start by mentioning Wimborne rotary club and its yearly Great Santa fun run. Picture, Madam Deputy Speaker, 100 men, women and children running around the local point-to-point course dressed up as Father Christmas the week before Christmas. It sounds fun and of course it is. Gone are the heady days when we aimed to win the competition—merely completing the course is a prize in itself these days. Each year, the run raises several thousand pounds for charities and good causes.

Back in 2013, when the Small Charitable Donations Act came into force, my wife was the parish church treasurer and gift aid administrator, so I know how welcome were the changes that simplified and reduced bureaucracy, as people no longer had to fill out complicated forms to secure gift aid on gifts of £20 or less.

[Kevin Foster (Torbay) (Con)]

My hon. Friend is giving an excellent speech. Does he agree that the key point to remember is that churches are not just places of worship on a Sunday but living, breathing parts of the community? For example, the Living Room initiative at St Mary Magdalene church in my constituency provides tea, coffee and bacon sandwiches for many people who have nowhere else to go.

[Michael Tomlinson]

I could not agree more with my hon. Friend, who makes an excellent point. The Bill will help all groups—not just church groups, but many others—in reclaiming gift aid and slimming down bureaucracy. I warmly welcome the Bill’s aim of further reducing bureaucracy by, for example, getting rid of the two-year rule. That will help new charities enormously and will encourage those thinking of setting up charities to do so.

[Maggie Throup (Erewash) (Con)]

My hon. Friend makes an important point about cutting bureaucracy and time. Often, small charities rely on volunteers, whose time is far better spent out there promoting the charity rather than dealing with paperwork and red tape. The Bill will be very welcome in his constituency, as I am sure he will explain.

[Michael Tomlinson]

I am grateful for my hon. Friend’s timely intervention and will come to exactly that point in one or two moments.

My hon. Friend the Member for Taunton Deane (Rebecca Pow) mentioned sport. As a keen sportsman, I warmly welcome the fact that the policy will be open and available for amateur sports clubs. That is very much a step in the right direction.

I want to mention one charity in my constituency, Waggy Tails Rescue. It does not rival the Minister’s Battersea Dogs and Cats Home, but it does play an important part in the constituency of Mid Dorset and North Poole as a dog rescue charity that re-homes dogs in east Dorset and west Hampshire. I had the pleasure of visiting it in the recent past and it explained the difficulties of being a small charity and facing the bureaucracy that can be involved. As my hon. Friend the Member for Erewash (Maggie Throup) mentioned, such charities have few if any professional staff, and therefore the more time they can spend undertaking charitable works rather than carrying out bureaucratic office functions, the better.

One concern or criticism is whether enough awareness has been raised. I suspect that each of us as Members of Parliament can play our own part in raising the profile and awareness of the scheme.

I warmly welcome the childcare payments measure. This has not been mentioned during the debate, but the Bill will open the scheme up to parents who are self-employed. As someone who was self-employed, I often felt left out of tax schemes in the past. The measure will be warmly welcomed by those in the community who are self-employed, but perhaps I could invite the Under-Secretary of State for Culture, Media and Sport, my hon. Friend the Member for Reading East (Mr Wilson), to say how he will raise awareness so that all families who are eligible can take up that excellent scheme.