§ 5. Sir Nicholas Winterton (Macclesfield) (Con)What changes he proposes for the taxation of charities. [158471]
§ The Chief Secretary to the Treasury(Mr. Paul Boateng)The Government keep all aspects of taxation policy under review. Any possible changes to charity tax will be considered by the Chancellor in his assessment of what is required in the Budget.
§ Sir Nicholas WintertonI am grateful to the Minister for that reply. Will he accept that admission charities such as the Macclesfield silk museums are in a different position to beneficial charities such as Oxfam when it comes to the recovery of gift aid benefit? Charities such as the silk museums are often able to function and survive only by imposing admission charges. Will he accept that the entry fees should be regarded as a donation to the charity, rather than a proportion being seen as a donation and the balance as a commercial benefit? Will he please review the situation, for the sake of the survival of many small museums?
§ Mr. BoatengThe hon. Gentleman knows that I cannot comment on specific individuals or institutions, but I share his enthusiasm for and commitment to the charitable sector and to the particular sector that he mentions. He will also understand that the proper focus of the gift aid scheme has to be on a continuing relationship between the donor and the charitable organisation. The changes announced by my right hon. Friend the Chancellor in the pre-Budget report, which are currently the subject of discussion with the sector, are designed to achieve that. Day admissions, as the 1039 hon. Gentleman will know, are not really about ongoing relationships and, therefore, I cannot accept the thrust that underpins his question.
§ Mr. Stephen McCabe (Birmingham, Hall Green) (Lab)If there is to be a review of charities and tax, could we once and for all define what legitimate charities are, and stop the abuse by which organisations such as public schools may posture as charities to gain tax relief?
§ Mr. BoatengThe matters to which my hon. Friend refers are properly matters for the Charity Commission, not the Government. I know that he will join in the support on both sides of the House for the valuable role that the charitable sector plays.
§ Mr. Mark Prisk (Hertford and Stortford) (Con)Given the clear concern of hon. Members on both sides of the House and the unique role of charities, will the Chief Secretary explain why under this Government—despite all the many schemes and promises—the total tax paid by charities has not simply increased, but effectively doubled?
§ Mr. BoatengWhat the hon. Gentleman describes as "all the promises" have delivered £2.3 billion-worth of tax reliefs and special provisions to charities each year, £506 million of which has been a result of gift aid. He will not find anyone in the charitable sector who accepts his analysis that the Government have not done more for that sector than any of their predecessors—they have certainly done more than the Government formed by the party of which he is a member. We have continued, and we will continue, to support the charitable sector. I hope that we enjoy from his party the support that our measures deserve, because we have not always had it in the past.