Although a pretty unremarkable Budget (some might say dull) in many ways, the Chancellor’s surprise gift to the sector is the three-year transitional relief scheme for Gift Aid. What this means to charities is that for the next three financial years they can still claim Gift Aid at the 22% rate, equating to 28p for every pound donated under Gift Aid.

There was outrage in the sector at last year’s Budget when it was realised that the levelling out of the basic rate of Income Tax at a flat rate of 20% at the bottom end would cost the sector around £85m in 2008-09 in lost Gift Aid, and most estimates suggest that the transitional relief should be worth £300m over the next three years.

So, all of you who have already printed new Gift Aid materials mentioning the ‘new’ 25p claim – oh ye of little faith!

There was other news on Gift Aid that affects small charities and the dreaded Gift Aid Audit promising a lighter touch from HMRC and to help, the Government has launched a new online help service at www.direct.gov.uk/giftaid - however on checking I find that the information still points to the ‘new’ rate of 20% from 6 April 2008. Mr Darling had obviously not even told other departments about his surprise for us.

So that’s it then, we get three more years to find out how to raise an extra £100m a year – shouldn’t be too difficult!

Kevin Kibble