Budget 2010: How will it affect you?

The National Council for Voluntary Organisations (NCVO) has identified some key points from today's budget which will affect the community and voluntary sector.

Key points for the voluntary and community sector include:

• Departmental budgets face an average real cut of around 25% over four years (apart from health and aid spending which is protected).
• VAT will increase to 20% in January 2011 Although this will impact on the sector, the Government has committed to work with sector bodies to assess the feasibility of implementing the EU cost-sharing exemption in VAT. A formal consultation on this will be launched in the autumn.
• A bank levy will be introduced, which will apply to the balance sheets of UK banks and building societies and the UK operations of foreign banks. Smaller banks will not have to pay. This is expected to raise more than £2 billion a year.
• Councils which propose low council tax increases will be offered extra funds to allow them to freeze council tax for one year from April 2011.
• A Regional Growth Fund will be created to help fund regional capital projects over two years.
• The welfare budget has been cut by £11 billion.
   

For more information about the Budget and how it will affect you visit the NCVO website.