The chancellor has announced £750m of extra funding for frontline charities across the UK, a move that is unlikely to go far enough to save some third sector organisations from collapse.
The announcement, made by Rishi Sunak in Downing Street’s daily coronavirus briefing, came after widespread calls to extend government financial help offered to small- and medium-sized businesses to the charity sector.
Some of the best-known national charities are in dire straits as revenue from charity shops and fundraising events dries up during the coronavirus lockdown. The Labour MP Stephen Doughty tweeted that the new funding fell well short of what was needed, pointing out that the cancellation of the London marathon alone cost the sector £66m.
The Treasury said on Wednesday that £360m would be directly allocated by government departments to charities providing key services and supporting vulnerable people during the Covid-19 crisis.
Another £370m for small- and medium-sized charities would be available for community organisations that are providing services such as delivering food, essential medicines and providing financial advice. Of this, £60m will be allocated through the Barnett formula to those in Scotland, Wales and Northern Ireland. Read more