(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.