Charity Finance Group briefing: Cost Benefit Analysis of Brexit for charities



This briefing is produced by the Charity Finance Group and is reposted here with permission.

As the UK government enters the final phases of negotiations with the European Union, civil society has the opportunity to consider what impact Brexit might have on our sector. More importantly, it allows us to make clear asks on what we would need to see from a final deal to create a good Brexit outcome for charities.

When we consider the issues which are of greatest concern to charities; tax reform, funding, public procurement, state aid and workforce, as they stand, we cannot have confidence that Brexit will deliver for civil society. This report provides recommendations for government on each of these policy areas to address these concerns. Charity Finance Group‟s six-point plan provides an overview of what we would need to see from a final deal to offer assurances to our sector

Charity Finance Group’s six-point plan for charities on Brexit:

A good Brexit outcome for charities would see:

1. A deal where the UK has complete freedom to change VAT rules. This would include creating new zero-rates, options to tax and a comprehensive rebate mechanism.

2. The UK government to commit, at a minimum, to fund services currently funded by the EU at the same level, and also make improvements in delivery of funding.

3. A deal where the UK is still able to flexibly pool resources to access EU funds in key areas such as international aid.

4. A deal which allows the reform of state aid so that it focuses on enforcing competition in real markets rather than tying up charities and social enterprises in red-tape working in broken or non-functioning markets.

5. Greater flexibility on public procurement so that more grants and contracts are awarded on the full social, economic and environmental value that could be created, not just on cost.

6. An immigration system which is flexible and enables charities to continue to hire the workers they need in order to carry out their objectives.

Read the whole briefing here.