The Spring Statement introduced no new tax measures and served primarily as a stability update rather than a fiscal intervention. Although the Spring Forecast reported falling inflation and borrowing, these improvements were not coupled with any new relief for rising charity costs.
Charities are facing cost increases from April 2026, which have come from measures previously announced and legislated for. Wage floors will rise, with the National Living Wage increasing to £12.71 and younger worker rates also climbing. Charities are also expected to see higher staffing‑related costs and are continuing to absorb the higher Employer NIC rate of 15%.
There is some good news coming, with the forthcoming VAT relief on donated goods taking effect 1 April 2026, which will remove the requirement for businesses to account for VAT on eligible goods donated to charities, representing a constructive step that may help increase donation and reduce waste.
We will continue to work with the Government in the months ahead, including in the lead‑up to the Budget later this year, to ensure that the Government addresses the needs of the charity sector when making new tax policy. This will include ongoing discussions on priority issues such as Gift Aid reform, the treatment of VAT on social media advertising, and the case for modernising VAT reliefs on essential disability equipment.