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Gift Aid

Volume 459: debated on Tuesday 1 May 2007

To ask the Chancellor of the Exchequer pursuant to the answer of 23 April 2007, Official Report, columns 983-84W, on Gift Aid, (1) whether the predicted increase of £0.4 billion in Gift Aid in 2007-08 takes into account the reduction of two per cent. in the basic rate income tax; and if he will make a statement; (134699)

(2) what the evidential basis was for the assumption that Gift Aid would increase by 5.6 per cent. in 2007-08; and if he will make a statement.

The figures provided relate to the year 2007-08. The change to the basic rate of income tax announced in the Budget, takes effect from 2008-09.

The estimate of 5.6 per cent. increase for 2007-08 is informed by the Treasury’s latest projections for average earnings growth and employment growth, which are consistent with the assumptions for trend output growth published in chapter B of Budget 2007.

As announced by the Chancellor in his recent Budget speech, the Government will consult with the charitable sector on measures to increase take-up of gift aid.