Implications for charities and not-for-profits – Spring Budget 2024

Jeremy Hunt’s 2024 Spring Budget has provided some positive support to the sector which will undoubtedly be welcomed. 

The announcements provide for both direct and indirect support which can be seen as ultimately aiming at relieving pressure being placed on charities in some sectors. 

Whilst it wasn’t the 2 year extension to the Household Support Fund that was being sought, the Chancellor did confirm a six month extension to the Fund which may go some way to reducing demand for the services a number of Charities provide. 

For those charities that undertake VATable activities, there is the increase in the registration threshold to £90,000 before needing to register for VAT, a minor change but could alleviate a large administrative burden. 

£100m of the levelling up fund has been allocated for cultural projects in communities which is set to benefit village halls amongst others. 

For those not-for-profit creative industries, existing tax reliefs for theatres, orchestras, galleries and museums are set to continue with a particular reference to the 45% tax relief for orchestral performances being made permanent and £26m of funding for The National Theatre to upgrade its stages. 

Additionally, £45m is being made available to support research for medical charities into dementia, cancer and epilepsy. 

Investment into the NHS via the Public Sector Productivity Plan, notably to reduce waiting times, should further prove to release pressure on the demand for some charitable services. 

Overall, the Spring Budget does not create any significant changes for the Sector but may provide some relief for the demands on its many services.  

Watch our Spring Budget question time webinar

Following the Spring Budget, our panel of specialists examined the announcements made by The Chancellor, discussing what these changes mean for you. They also answered questions from our live audience. This webinar is now available to watch on demand here.

Alternatively, if you would like any further information or guidance on this topic, get in touch with your usual Kreston Reeves contact or contact us here.