Spring Statement 2025: Impacts on the charity sector

Spring Statement 2025: What it means for Charities

The Spring Statement 2025 has been met with disappointment from the charity sector, with many organisations voicing concerns over the lack of targeted support for charities amid ongoing financial pressures. While the Chancellor announced a range of economic measures, there were no significant provisions to ease the challenges facing the voluntary sector, leaving many worried about the future sustainability of charities.

Key announcements and their impact on Charities

Despite calls from sector leaders for urgent support, the Spring Statement did not include any direct funding or relief measures for charities. Instead, the government’s focus was on broader economic growth policies, tax adjustments, and spending plans that will indirectly affect the sector. Some of the key points relevant to charities include:

• No Additional Charity-Specific Support: Unlike previous budgets that introduced measures such as energy relief or emergency funding for charities, this statement contained no new financial support to help charities navigate rising operational costs.
• Tax and VAT Measures: The government confirmed adjustments to tax thresholds and VAT rules, but there was no extension of VAT relief or targeted tax cuts that many charities had lobbied for. Without further tax incentives, charities will continue to face difficulties maximising their financial resources.
• Public Spending Constraints: The Chancellor reiterated the government’s commitment to fiscal discipline, meaning continued pressure on public sector grants and contracts—a major source of funding for many charities. With local councils also facing budgetary constraints, there are concerns that funding cuts will further impact service delivery.
• Cost of Living and Demand for Services: Although the government outlined plans for economic growth and household support, these measures do not significantly alleviate the financial burdens facing low-income groups. Many charities fear that demand for their services, particularly in poverty alleviation and social care, will remain high without corresponding increases in funding.

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Spring Statement 2025: What it means for Charities