Now the Budget for 2016 has been announced are you wondering what George Osborne’s latest set of cuts mean for you? It’s often tricky to decipher what’s beyond the big budget headlines and see what’s relevant to smaller charities.

Here’s a bite-sized round-up of areas that impact smaller charities and possible opportunities:

  • Lower growth – With growth projections reduced from 2.4% to 2.2%, smaller charities may feel the brunt of reduced funding, as Local Authorities reduce funding for services such as advice, advocacy, youth work or supportive work for statutory services.
  • Lower growth – lower confidence – The value of the pound dropped immediately following the Budget which, added to growing concerns around the international economy, is a recipe for lower corporate confidence, resulting in less charitable investment.
  • Sugar tax and after-school activities – While the focus of this budget was on the Chancellor’s sugar tax, he also introduced plans to extend school hours for extracurricular activities. Any charities working with schools on arts or sports activities should gear up to bid for funding and expand their partnerships.
  • Disability benefits – it is expected that at least £1.2bn of the £3.5bn extra savings to be made by 2020 are expected to come from a reduction in the Personal Independence Payment (PIP) of disability benefit. Any charities covering costs through schemes charging from personal budgets to diversify their income will see an impact on this income source, as people with disabilities affected by these changes (up to 600,000 people) will have less money for these services.
  • Homelessness and women’s organisations – Women’s organisations are set to benefit from the ‘Tampon Tax’ and homelessness organisations will benefit from investment in low-cost second stage accommodation with the doubling of the social impact bond (to £10m).
  • New philanthropic opportunities? – With an increase in the threshold for top rate income tax and reductions in capital gains tax, higher earning individuals might have increased money at their disposal for philanthropic donations. There’s no harm in asking them to do something good with their savings!