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ARTICLE · 28 OCTOBER 2010

The Comprehensive Spending Review: How It May Affect Charities

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Central government departments face cuts averaging 19% while local government funding will be cut by 7.1% each year over 5 years.

United KingdomCorporate/Commercial Law
Chris Priestley
Chris Priestley
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Departmental spending cuts

Central government departments face cuts averaging 19% while local government funding will be cut by 7.1% each year over 5 years. Given that the charity sector received £12.8 billion in government funding in 2008/09 - over a third of its total income - the impact of the reductions on the charitable sector will be severe.

Charities helping individuals to move from welfare to work will be hit by the abolition of BIS's 'Train to Gain' programme.

Charities in the cultural or sports fields will be hit by the DCMS settlement: 19 DCMS public bodies are being abolished or 'reformed', including the UK Film Council and Museums, Libraries and Archives Council. Other DCMS public bodies face major cuts, including Sport England (30%), English Heritage (over 30%) and the Arts Council (50%).

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