Charities: Finance

(asked on 28th March 2025) - View Source

Question to the Department for Digital, Culture, Media & Sport:

To ask the Secretary of State for Culture, Media and Sport, with reference to the Spring Statement of 26 March 2025, what assessment she has made of the potential impact of changes to her Department's planned budget for the 2025-26 financial year on support for charities.


Answered by
Stephanie Peacock Portrait
Stephanie Peacock
Parliamentary Under Secretary of State (Department for Culture, Media and Sport)
This question was answered on 3rd April 2025

At the recent Spring Statement, we reiterated the fiscal rules that would guide this Government. The government has taken a number of difficult but necessary decisions on tax, welfare, and spending to fix the foundations of the public finances, fund public services, and restore economic stability.

However, we recognise the vital role that charities play up and down the country, by providing crucial support to different groups and communities.

DCMS continues to support charities in several ways. This includes delivery of a number of grant schemes, such as the £25.5 million Voluntary, Community, and Social Enterprise (VCSE) Energy Efficiency Scheme, which is supporting frontline organisations across England to improve their energy efficiency and sustainability.

Support for charities is also available through social investment which provides access to grants, repayable finance and a blend of the two. This government is continuing to look at how dormant assets can be used to support the availability of finance to facilitate VCSEs becoming more entrepreneurial and financially resilient. An estimated £350 million will flow into the Dormant Assets Scheme between 2024-28, with details on how this money will be distributed to be provided in due course.

Within the tax system, we provide support to charities through a range of reliefs and exemptions, including reliefs for charitable giving. The tax reliefs available to charities are a vital element in supporting charitable causes across the UK, with more than £6 billion in charitable reliefs provided to charities. The biggest individual reliefs provided are Gift Aid at £1.6 billion and business rates relief at nearly £2.4 billion.

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