Government charity sector measures welcome but only addresses the tip of the iceberg, says RSM

Chancellor Rishi Sunak has announced a £750m package to keep struggling charities afloat during the coronavirus pandemic.

The move follows concern that some charities are facing collapse, with income and reserves shrinking because of the wider shutdown across the UK.

Nick Sladden, national head of charities at leading audit, tax and consulting firm RSM, comments:

‘The measures announced by the Chancellor yesterday is welcome news for charities. Unfortunately, however, the extent of this measure will only address the tip of the iceberg. £750m will not go very far in a sector that generates annual income well in excess of £40bn. 

‘Whilst it's great to see hospices and some other front-line service-providing charities being supported as part of this new series of measures, there are others providing important services that have been left out. In particular animal welfare charities need financial help as they have not been able to fully utilise the government’s support measures so far. Many have been unable to take full advantage of the government backed furlough scheme as their workforce still needs to be present to care for the animals. But it’s not just animal welfare organisations, with others providing important services that aid community well-being despite not being necessarily frontline in the fight against coronavirus. 

‘Let's hope this is the first of a number of support measures for the charity sector and that other financial reliefs will follow with the net being widened in the charity sector, which is so vital to our national wellbeing.’

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