INDEPENDENCE OF NHS CHARITIES

That this House is alarmed at the manner in which the Department of Health and Monitor are applying International Accounting Standard 27, which will come into effect from April 2010, to NHS charities; notes the serious concern amongst the Association of NHS Charities and the Charity Commission that this could lead to the consolidation of NHS charities' funds, worth over £300 million annually, and assets, worth over £2 billion, into the public accounts of their parent NHS bodies; believes this would seriously undermine the independence of those charities and damage their level of income from donations; further believes that the manner in which these accounting standards are being applied is entirely inappropriate for NHS charities; and calls on HM Treasury and the Office of the Third Sector to take action to ensure that the existing independence of NHS charities from public sector bodies is maintained.