The July election saw Labour secure a landslide victory, with the largest majority since 1997. But what does the new government mean for charities and the not-for-profit sector?
In our latest blog, we explore some of the key changes for charities which Labour have outlined in their manifesto and press coverage during the election.
Increased regulation
The Labour government has already initiated ideas to strengthen regulation to ensure funds are spent correctly and efficiently. The government have also made it clear that they will provide the Charity Commission with the necessary assets and authority to assist with, and monitor, all charitable activities.
The opportunity for innovation
The Labour government has plans in place to assist charities making transformative and innovative changes to resolve wider social issues. The government has also pledged to provide training and development opportunities for leaders to strengthen their operation skills and increase their impact.
Collaboration opportunities and partnerships
The Labour government aims to motivate individuals to foster partnerships between charities, government bodies and businesses to pool resources and expertise for greater social impact.
Liability and openness
Charities will be encouraged to adopt comprehensive impact measurement tools to showcase the success of their initiatives. The government also plans to implement transparent reporting practices to establish trust with donors and the public.
Promoting social enterprise and volunteer work
Labour’s manifesto outlined that they plan to encourage the expansion of social enterprises to merge business efficiency with social objectives. This, paired with the initiation of a nationwide campaign to increase volunteerism, aims to places a heavy focus on the crucial role volunteers play in the charity and not-for-profit sector.
Support with finance and funding
The new government have pledged to increase funding and support for charities, as well as simplify the grant application process, with a particular focus on areas such as poverty and social inequality. This is a great step forward and something to be considered for potential growth plans.
Tax benefits
The expansion of tax relief measures by the Labour government should result in greater donations from individuals and corporations, alongside the promotion of the Gift Aid scheme to increase awareness of the benefits. The government has also recently set out its intention to levy VAT on private school fees from 1 January 2025, and with the majority of independent schools registered as charities, we may see a decline in those who can afford to attend.
Digital evolution
Charities will receive investment in digital infrastructure to update and improve their systems and processes, under the governments plans, to ultimately improve their operational output and delivery of their services.
Promotion and impact
The Labour government has cemented the view that charities should remain independent and have the right to run public campaigns, even if they are critical of the government. A policy which aims to ensure that charities are involved in the development and evolvement of future strategy and inform government decisions as stakeholders.
What are the next steps?
The PM+M team can help you understand the upcoming changes, and how they may affect your charity. To arrange an informal chat to discuss your circumstances in more detail, please contact PM+M charity specialist, and audit partner, Ceri Dixon, by clicking the button below.
