July Policy Update

Welcome to our July Policy Update! As we entered the month with a new Labour Government there have been several significant developments and announcements that impact the charity sector. This month’s policy update offers information on the King’s Speech, the appointment of Stephanie Peacock as the new Civil Society Minister, the influx of new MPs into parliament and some new announcements from Chancellor Rachel Reeves. 

King’s Speech 2024 – Implications for Charities 

The King’s Speech 2024 has introduced a series of legislative priorities that will significantly impact the charity sector. Here are some noteworthy outcomes that may be of interest to your charity: 

• Tax Changes for Private Schools: Plans to remove VAT exemptions for private school fees to fund new teachers, potentially affecting independent schools that are charities. The government has released a technical consultation on this draft legislation which is open until 15 September 2024. Learn more here. 

• ‘Martyn’s Law’: The Terrorism (Protection of Premises) Bill, requiring public venues, including those run by charities, to implement counter-terrorism measures proportionate to their size. 

• Devolution Proposals: New powers for metro mayors and combined authorities, including a ‘right to buy’ for community assets. This could allow local charities more influence over local policies. 

Get prepared by getting to know this new legislation programme. Our Director of Policy and Research, Jay Kennedy, has put together a summary of the key outcomes of the King’s Speech, take a look here. 

We have a new Civil Society Minister 

Stephanie Peacock, Labour MP for Barnsley South, has been appointed as the new Civil Society Minister. Before the election, Peacock was Labour’s Shadow Sport, Gambling and Media minister. Her background working for charities and campaign groups signals a positive direction for the sector.  

We hope she brings with her a renewed focus on the role of charities and community organisations in shaping public policy and delivering essential services. We join sector infrastructure bodies in welcoming Peacock to her new position and hope that she works collaboratively to strengthen the sector. 

Learn more about Peacock’s appointment and how the charity sector has reacted here. 

New MPs could mean a shift in priorities  

Following the recent election, many new MPs have taken their seats in what looks like a transformed parliament. This influx of fresh faces brings diverse perspectives and a potential shift in priorities that could influence the charity sector. 

The new parliament exhibits a more diverse representation of people, including more women, younger MPs, and individuals from various ethnic backgrounds. This is exciting because these new MPs could bring a well-needed shift in legislative priorities, including increased focus on social issues, environmental concerns, and community support. Charities have a unique opportunity to engage with these new MPs to advocate for their causes and influence policy decisions. 

Charities should actively use this time to build relationships with these new MPs, understand their priorities, and advocate for policies that support their missions. Read Jay Kennedy’s tips for introducing yourself to new MPs here. 

Chancellor Rachel Reeves reveals £22 billion spending black hole  

In a speech in the Commons on Monday 29 July, Chancellor Rachel Reeves warned that “difficult decisions” on tax would be required in her first budget, which she said would take place on 30 October. According to Reeves, this is due to a £22 billion black hole in spending caused by the Conservative party. She also announced that she will be getting rid of: 

• Universal winter fuel payments – which are currently paid to all pensioners; 

• The implementation of the Advanced British Standard – Rishi Sunak put through this change that would see A-level students take 5 subjects instead of 3. Reeves announced that this would cost £200 million a year; 

• A303 Stonehenge project – the Conservative plan to rebuild the A-road running alongside Stonehenge into a tunnel beneath it would have cost £1.9 billion. 

Alongside these announcements, Reeves announced that doctors, teachers and other public sector workers will get a pay rise, however, cuts will include stopping non-essential spending on consultancy and communications. Additionally, the government will set up a new watchdog aimed at ensuring all government spending provides value for money.  

Want to engage with the new government? Join us at this year’s Engage Conference where we’ll be bringing sector professionals to discuss how charities can best work together with politicians and policymakers. Learn more and register here.