Impact Of VAT On The Voluntary Sector

EDM number 4 in 2005-06, proposed by Bob Russell on 17/05/2005.

That this House values the wide range of work and activities undertaken by charities, including those involved in hospice care, care of the elderly and youth and sports organisations; welcomes the statement in the Treasury Cross Cutting Review into the Role of the Voluntary and Community Sector in Service Delivery that the voluntary and community sector organisations have a crucial role to play in the reform of public services and reinvigoration of civic life; notes, however, that irrecoverable value added tax has a massive impact on the ability of charities to achieve their objectives and help to deliver essential services; further notes that the irrecoverable VAT burden on charities is estimated to be at least £400 million per year and that the increase in National Insurance contributions is estimated to cost charities a further £50 million per year; and calls on the Government, as a priority, to introduce measures to reduce or remove crippling financial burdens on charities.

This motion has been signed by a total of 137 MPs, 1 of these signatures have been withdrawn.