IMPACT OF VAT ON THE VOLUNTARY SECTOR

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 calls on the Government, as a priority, to introduce measures to reduce or remove crippling financial burdens on charities.