Public Policy

At the core of the budget's micro-economic measures, affecting the supply side of the economy, was the 'employability' package - designed to encourage and in some cases cajole disadvantaged people into work, from young and long term unemployed people to lone parents and people with disabilities. Attention now switches to bringing these schemes to reality and securing company participation.

What are the chances of a long term impact on social exclusion? Mainly funded by the one-off windfall tax on utilities and raids on lottery money, in truth that depends largely on macro-economic issues, with the strength of sterling and a possible recession threatening to cut the number of real jobs available. Time will tell.

For the moment, let's look elsewhere, at the Chancellor's on-going review of taxation of charitable giving. Welcome though the new tax relief on `Millennium' in-kind giving undoubtedly is, it exacerbates the current muddle. Instead of the clear rules about cash giving, companies have to rely for relief against profits on a series of limited concessions covering secondment, stock, facilities and plant and machinery. On VAT the lack of any exemptions is a serious deterrent as companies are reluctant to go on relying on Customs & Excise turning a blind eye. What is needed now is a consortium of leading charities, backed up by companies, to make the case for a comprehensive package of tax relief for in-kind giving..

Corporate Citizenship Briefing, issue no: 39 - April, 1998