Although the Chancellor intends to consult with philanthropists to ensure the capping of income tax relief for individuals making charitable donations does “not impact significantly on charities that depend on large donations”, many charities will already be concerned about this announcement.

Gift Aid and other forms of tax relieved charitable donations have been a major incentive to charity funding for many years. It is critically important to the survival of many charities that nothing is done to discourage philanthropy, especially in the current economic climate. It is therefore hoped that there will be early clarification of how these new measures will take effect, so that the likely impact on charities can be fully assessed.