Charity figures declining despite ‘big society’ initiatives

News Article - 17 June 2011
Category: Business

Despite David Cameron's pledge to encourage a greater number of charities into the public sector as part of his 'big society' initiatives, as many as 1,600 UK registered charities have fallen by the wayside in the Coalition Government's first year in office.

Since May 2010, over 8,000 charities have been removed from the official register with just 6,400 new charities founded in their place.

Charity bosses fear the reduction in the number of registered charities is part of a contraction in the charity/non-profit sector, as billions of pounds of statutory support is set to be cut by the Government.

In March alone the number of charities fell by 700 as a result of the hefty local authority budget cuts. Certainly Government cuts in charitable grants have the potential to kill off Mr Cameron's ambitions for the 'big society'.

Emily Holzhausen, policy direct of Carers UK, said: "The big society doesn't come for free. Community projects do need resources to get off the ground.

"If those aren't there, or are even removed, it's a real worry. Public grants make up a core part of many charities' funding.

"Charities losing that part of their funding are often no longer viable, which affects services to some of the most vulnerable communities in the country. Anecdotally, we've heard of several organisations that now no longer exist. This research seems to back that up."

Voluntary income is under increasing pressure with unemployment and inflation having a worrying impact on charitable giving, according to Jane Arnott, senior advisory manager for Charities Aid Foundation (CAF).

"The income of public sector workers is frozen, while those in the private sector got around 3% this year. With inflation at 4.5%, incomes are under pressure. In this climate, charities may see voluntary income falling by more than they expected," she added.

Recent research conducted by the University of Bristol and Cass Business School has established that fewer households choose to donate to charity than a generation ago. The apathy of the younger generation is causing concern with the giving culture in British society attributed to older generations.

Article keywords: Big Society, David Cameron, Coalition Government, charities, Emily Holzhausen, Carers UK, Jane Arnott, Charities Aid Foundation, University of Bristol, Cass Business School

---

More industry news

• Think tank warns UK may have already slipped back into recession
• Growing demand for HR staff in technology and international sectors
• Boosting business growth a ‘priority’ to avoid Eurozone slowdown
• HMRC launches alternative disputes pilot scheme this week
• December employment statistics disregard gloomy recruitment predictions
• Eurozone manufacturing PMI shows modest improvement
• UK scores highly for economic governance by ratings agency
• Government launches two-year project focusing on manufacturing sector
• Burden of regulation on UK businesses ‘too high’

Back to news home page »