Budget 2011: Culture, Media and Sport

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We examine some key highlights affecting culture, media and sport policy, including reaction from ePolitix.com members.

• Reform the intellectual property regime for the digital and creative industries.

• Simplify the administration of gift aid.

• Gift aid ceilings increased to £2,500 from £500.

• From April 2012, people leaving 10 per cent or more of their estate to charity will enjoy 10 per cent reduction in inheritance tax, benefiting charities by £300.

Member Response: John Low, chief executive, Charities Aid Foundation

The Chancellor has today delivered for charities and those who want to support them.

The commitment to bring Gift Aid into the 21st Century will revolutionise this important tax relief and go a long way towards reducing the £750million that goes unclaimed each year. We are also pleased to see they have implemented our recommendation to remove restrictions around thanking donors.

Government support for promoting payroll giving will help realise the potential of this much under-used method of giving. It provides an important regular income for some charities but currently only 2.4 per cent of all UK PAYE employees give in this way. We look forward to working with the Government to develop a campaign.

The new incentive to leave money for charity in your will is attractive and will go some way towards making this a norm. We had hoped to see the introduction of Lifetime Legacies which have generated over $107billion in the USA and would do more to encourage a link between donors and the charities they support but we still welcome this initiative.

Member Response: Michelle Mitchell, charity director, Age UK

For Age UK and other charities, the changes in Gift Aid and inheritance tax will come as a welcome boost in financially challenging times.

Member Response: Su Sayer OBE, chief executive, United Response

George Osborne described the Budget as "a big help for the Big Society". Given the gloomy economic outlook, the voluntary sector was certainly hoping for good news from the Budget, and it came in a series of measures designed to benefit charities and increase giving from the wealthier members of society.

The discount on inheritance tax on estates where 10% or more is left to a charity recognises the importance of the voluntary sector in the UK, and should incentivise large donations. Even more encouraging was the announcement that charities will be allowed to claim Gift Aid on up to £5,000 of small donations per year without the need for Gift Aid declarations. This will boost fundraising and reduce bureaucracy, which will be particularly crucial for small community organisations who may be struggling.

Indeed, many charities are likely to find the coming year difficult, due to reduced funding from local authorities and the fact that many ordinary members of the public are facing frozen wages and rising inflation. We would like to see the Government do even more to help the voluntary sector through these difficult times. One thing which needs urgent attention is the VAT charged on services shared by charities: if this obstacle was removed it would be a lot easier for the third sector to collaborate and be more efficient in their administration, allowing us to concentrate on providing frontline services that really make an impact on people's lives.