Each of the political parties have published their manifestos in order to give voters an insight into their party’s commitments should they win the general election.
Generally, each party appears to be committed to changing business rates, not raising taxes for the majority, and dedicated to supporting young people and apprenticeships.
The headlines tend to focus more on how the main pledges of each party impact both individuals and businesses. Other than promises to continue to support culture and sports, little was mentioned for the charity and not-for-profit sector.
Our Charities team have summarised below the pledges from the main political parties’ manifestos that could impact charities.
Conservatives
- Complete the Gift Aid review in the next Parliament (no further details on this at this stage);
- Continue to review the VAT threshold;
- Cut employee NI to 6% by April 2027;
- Fund 100,000 apprenticeships;
- Commitment to continue to support museums and libraries, which includes an extension to the Community Ownership Fund allowing more local communities to take control of music venues, libraries and green spaces; and
- Continued support for the sport and creative sector:
- Aim to keep the creative tax relief sector competitive by supporting growth; and
- Continue the Multi-Sport Grassroots facilities programme. This includes a review of current criteria to ensure that more sports clubs benefit.
Labour
- Do not intend to increase Income Tax, National Insurance or VAT thresholds;
- Committed to capping Corporation Tax at 25%;
- Dedicated to end the VAT exemption and business rates reliefs for private schools;
- Reform of business rates relief to “raise the same revenue but in a fairer way,” with no mention of how the “fairer way” would be achieved;
- Commitment for a programme to guarantee apprenticeships, or support in finding work for 18-21 year olds; and
- Changes to the minimum wage to be the ‘actual living wage’, taking into account cost of living and removing age brackets so all adults are entitled to the same minimum wage.
Liberal Democrats
- Commitment to cutting Income Tax by raising the personal allowance;
- Review of the off payroll working rules, known as IR35;
- Review of further education funding that includes an option to exempt colleges from VAT;
- Increasing apprenticeships and career advice for young people, which include scrapping the lower apprenticeship rate and creating a Lifelong Skills grant for adults to spend on education and training throughout their lifetime;
- Abolishing business rates and introducing a ‘Commercial Landowner Levy’ (no details in their manifesto as to what this is or means);
- Boost participation in sports by investing in local amenities and community sports clubs; and
- Maintain free access to museums and galleries.
The parties have all pledged to provide free school meals and further funding for education, the details of which have not been noted above.
With election day a couple of weeks away, it is worth starting to think about how the above pledges could impact your charities’ cashflow. Should the Conservatives lose overall majority, which from recent opinion polls appears to be likely, it is possible that there will be a Summer Budget shortly after the election to implement some or all of the winning party’s pledges.
As always, the Charities team will provide information on any announcements from a potential future budget when one arises but, in the meantime, watch this space.
