HL Deb 13 February 1979 vol 398 cc1099-102

2.52 p.m.

Baroness SHARPLES

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government whether they will accept the recommendations of the Goodman Committee to make specified tax concessions in order to encourage donations to charity.

The SOLICITOR-GENERAL for SCOTLAND (Lord McCluskey)

My Lords, I am unable to say whether or not the Government will accept the recommendations referred to, as they and other aspects of the law affecting charities are still being considered.

Baroness SHARPLES

My Lords, I thank the noble and learned Lord for that not entirely satisfactory Answer. I am sure he knows that there are nine Western European countries that give tax concessions in this way. May I ask him one further question? Are the Government considering changing from a seven-year covenant to, possibly, a four-year covenant for individuals?

Lord McCLUSKEY

My Lords, as those who are familiar with the report will be aware, this is one of the recommendations and it is one which is to be considered by Ministers. But Ministers will take the opportunity of considering not simply the recommendations which have been made by the Committee headed by the noble Lord, Lord Goodman, but also the Tenth Report of the Expenditure Committee and, indeed, the Charity Law Reform Committee. In other words, a very wide-ranging review of the law relating to charity is to be made and it is that which Ministers will consider. In the context of that review, this recommendation will, of course, be looked at.

Lord CRAIGTON

My Lords, I agree with everything that the Minister said, except for the fact that this review "is to be made". Is he aware that this has been going on for a very long while, and it is time that something was done about it?

Lord McCLUSKEY

My Lords, if the noble Lord is referring to the law relating to charities, it has been going on since at least 1601. But the report which is referred to in the Question was published in 1976. It contains a number of recommendations which are not entirely at one with the recommendations of the Tenth Report of the Expenditure Committee. Indeed, one of the problems is that all these different recommendations have to be looked at to see whether they can be reconciled, and whether the law which has been standing since 1601, and which has been modified by a number of cases since, can be improved by consideration and perhaps by the publication of a Green or White Paper.

Baroness MACLEOD of BORVE

My Lords, is the noble and learned Lord aware—I am sure that he is—that these days many charities are suffering from lack of funds? But there was a recommendation in the Goodman Report that charities should be free to reclaim VAT in excess of £25 on their expenses, which would help charities enormously. I, for one, would be most grateful if the noble and learned Lord could give us some idea of when we are likely to have the results of the report.

Lord McCLUSKEY

My Lords, as to the value added tax recommendation, that does not fall specifically within the terms of this Question, because it does not relate to encouragement of donations to charity. But, of course, that recommendation must be looked at along with others. This matter has been raised in the House earlier and there have been previous discussions about it. It would be dishonest of me to say that we shall come to the matter soon. I can say that we hope to come to it before very long.

Lord HAILSHAM of SAINT MARY-LEBONE

My Lords, while not pursuing this fine Scottish legal distinction, may I ask the noble and learned Lord, when he reports to his colleagues, to tell them to bear in mind that charities save the Exchequer a lot of money by doing work which is of a public nature and which would otherwise have to be undertaken at the expense of the taxpayer?

Lord McCLUSKEY

My Lords, I certainly acknowledge that, and indeed that view is made very apparent in even clearer terms by the noble Lord, Lord Goodman, and his Committee in the report referred to. That is well understood, and I am sure that it is an important consideration that must lie behind any scheme.

Viscount MONCKTON of BRENCH-LEY

My Lords, will the noble and learned Lord have a look at the American system of annuities for charities? I know that this is outside the immediate scope of this Question, but hospitals and churches in the United States can take capital sums, usually from those who are unmarried or without children, and in return give annuities with tax advantages and benefits to the charities concerned.

Lord McCLUSKEY

My Lords, I will draw the attention of my right honourable and honourable friends in another place to what the noble Viscount has said.