Labour to seek vote on Charity Tax on Wednesday

16 April 2012

Rachel ReevesRachel Reeves MP, Labour’s Shadow Chief Secretary to the Treasury, said today that Labour will seek a vote on Charity Tax in Parliament on Wednesday:

“The Government is in a complete mess over tax relief on charitable donations. The truth is at a time when the average family is taking a £511 a year hit as a result of the Government’s policies they have given the 300,000 wealthiest tax payers in the country a £3 billion tax cut. A rushed out cap on reliefs which will raise just £300 million pounds - whilst hitting charities which help the most vulnerable - won’t cover that up.

“Even this sham of a change is now unravelling as the Government is being forced to U-turn in the face of a predictable outcry from charities for whom this change came completely out of the blue.

“If the Government wanted to tackle avoidance they could have worked with the Charity Commission and had a proper consultation with charities and philanthropists. It is clear that this wasn’t a change made out of principle this was a cobbled together fig leaf for a tax cut for millionaires and talk of consultation now is simply cover for a climb-down.

That is why we will seek a vote to block these changes until the Government has done the work necessary to demonstrate they are being made in a way which will not hit charities and which will genuinely tackle avoidance.

“George Osborne has already failed on jobs and growth and getting the deficit down. The chaos and uncertainty created will already have hurt charities and will raise more serious questions about his competence.”