What’s the risk? Implications of the summer budget for housing associations

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July 22, 2015 at 11:00

The CFG team have recently been thinking about risk – risks in supply chains, cyber security risks and so on – and it is risk that forms the focus of this month’s Economic Outlook Briefing which will be published on 28th July. In the publication, my colleague Andrew O’Brien highlights that charities are particularly affected by government policy. Reading his article got me thinking about two particular policies introduced in the Summer Budget delivered by the Chancellor earlier this month: the extension of Right to Buy (RtB) to housing association properties and the reduction in social housing rents. Housing associations […]

We can’t ignore the charity sector’s financial situation

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July 13, 2015 at 15:34

Our sector has had a few days to recover from the decisions outlined in the Chancellor’s Budget last week. Although charities were not the focus, the decisions taken within it are going to have a big impact on our operating environment for the coming five years. Often we talk about the issues facing the sector in isolation; however, this is not how charities will experience them. It seems likely that over the next few years three things are going to put considerable pressure on already fragile financial situation: 1)    More cuts in government income, both grants and contracts 2)    Increasing […]

Welfare and employment dominate the Budget: What does this mean for charities?

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July 8, 2015 at 14:59

So we didn’t do that well with our bingo card – only ‘long term economic plan’, ‘£9 minimum wage target’, ‘fixing the roof whilst the sun is shining’ and the name dropping of a charity came up. Whilst the budget report does not have a section dedicated to the charity sector, there are a number of measures announced that will have an impact on charity finance which I will outline here. Keep an eye out for our briefing which will be posted on our website in due course. Profile of the cuts £17 billion of cuts were announced in today’s […]

#volsecbudget 2015 – CFG Live Blog

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July 8, 2015 at 09:12

09/07/2015 – 19:16 – AF This afternoon I attended the IFS post-budget briefing. Given the scale of the changes introduced it covered a lot of ground in a relatively short amount of time so will I provide a more detailed update later. But for now, I am going to briefly summarise the key issues that I think are relevant to charity finance. I do also recommend that you take a look at the materials available on their website. The opening remarks made by director of the IFS, Paul Johnson, neatly provides the IFS’s over-arching narrative: that it is hard to see […]

What can charities expect from Wednesday’s Budget? #VolSecBudget

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July 6, 2015 at 17:37

It seems like only yesterday that we were getting ready for the last Budget, but this Wednesday the Chancellor will deliver the first Conservative Government Budget for nearly 20 years and charities will be watching with interest. If the spending pattern follows that of the previous Parliament, we may well see a frontloading of cuts into this Budget as Osborne seeks to make significant changes early on. Whilst charities will not directly be a focus, there is still plenty to look out for in terms of impact on people that rely on charity services and the sector’s funding environment. You […]

The real picture – what can we learn from the Whole of Government Accounts 2013-14?

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March 30, 2015 at 17:17

Are you a government spending anorak? If so, I am sure that like me you spent all night reading through the Whole of Government Accounts (WGA) 2013-14 which was published last Thursday. WGA consolidates the audited accounts of around 5,500 organisations across the public sector, to produce a comprehensive, accounts based picture of the financial position of the UK public sector. They are different from the National Accounts, because they use the International Financial Reporting Standards that charities and private sector bodies often use. So the WGA includes future spending to meet current obligations, PFI liabilities, pension liabilities and the […]

A change in economic outlook- is your charity sinking or swimming… tell us!

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January 24, 2014 at 15:12

As the economy is beginning to show tentative signs of recovery, the most pressing question on the minds of many in the charity sector is how this will impact on their organisations. Whilst during the recession the charity sector has proven itself to be both resilient and flexible in its battle to cope with increased demand and reduced funding; the impact of the economic downturn has been significant with charities experiencing challenges such as cuts in frontline staff, closure of services and a drop in donations. The widespread effect of these tough economic times on the charity sector has been […]

The significance of the Spending Review

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June 25, 2013 at 13:38

In 2010 the Spending Review set departmental expenditure limits (DELs) from 2011/12 to 2014/15, outlining details of savings in the region of £86bn over that time. Tomorrow, nearly three years later and not much closer to eliminating the structural deficit, a new Spending Review will set DELs for the year 2015/16, aiming to achieve another £11.5bn of cuts. The next general election is set for 2015 and Labour has already said they will honour DELs set for the 2015/16 financial year.  The significance of this review is not necessarily the length of the period to which it refers though, but […]

Delayed reaction: what difference do Budget measures make to charities?

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April 3, 2013 at 11:27

As we toured the country last week, meeting over 200 charities to discuss Budget 2013, we were met by experts and charities that were, on the whole, underwhelmed by the contents of the red box. Top-line concerns stemmed from the macro-economic outlook, with the overarching narrative continuing to be one of austerity and restrained growth.  Fiscal neutrality, government cuts, erosion of real wages, low interest rates, variable inflation, and a shift to unconventional monetary policy tools – unfamiliar concepts five years ago – are now increasingly embedded as part of the ‘new normal’ as the country pushes forward with Plan […]

What we’d like from George tomorrow

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March 19, 2013 at 18:33

Tomorrow the Chancellor has the unenviable task of delivering the budget.  It’s not just the contents of the infamous red box that will be revealed at 12.30, we’ll also hear the Office for Budget Responsibility’s (OBR) prognosis for the economy and the public finances – and their judgement about whether the Government is on course to meet its medium-term fiscal objective. The OBR is expected to further downgrade growth forecasts and a triple-dip recession is a high possibility. With the Chancellor’s justification for his economic programme so far – that it would enable us to keep our stellar AAA credit […]