§ Mr. HarveyTo ask the Chancellor of the Exchequer what mechanism will replace tax credits in giving financial support to charities; and if he will make a statement. [114335]
§ Miss Melanie JohnsonThe reform of corporation tax announced in 1997 will generate greater prosperity for businesses and those who invest in them. The withdrawal of payable tax credits on charities' dividend income did not come into effect until April 1999 and charities will receive generous compensation on a tapering basis in order to adjust, at a cost to the Exchequer of around £1.1 billion, for a further five years. The "Getting Britain Giving" package of measures which is being introduced in April, is estimated by the charity sector to be worth some £350 million a year to charities.