This year’s budget was, in general, a good one for Lib Dems. Most notably, the party’s number one priority of taking more low-paid workers out of tax was fast-tracked, while the controversies, and specifically the cut in the 50p top-rate at a time when pensioners’ tax allowances are being frozen, have hit their Tory backers’ support in the polls.
However, there is one lesser noticed and malign Budget change, the ‘Charity Tax’ — a cap on tax relief which threatens to cost the charitable sector hundreds of millions of pounds — which has not attracted mainstream media attention. That needs to change if the Coalition is to be talked down from a policy with Lib Dem fingerprints on it, and which will undermine philanthropic giving at a time when it is needed more than ever during the public funding squeeze.