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CFG Economic Outlook Briefing 2018

Charity Finance Group's latest Economic Outlook Briefing analyses key financial trends across the economy, income and expenditure including inflation, government spending, wage growth and tax. It has found that inflation means that charities have to raise £3.7bn a year extra by 2020 in order to maintain their spending power from 2014/15.

The Briefing includes a Financial Risk Dashboard 2018/19, that shows government spending and inflation are key risks over the coming twelve months. CFG also raise concerns over fundraising from the public over the medium term, as higher inflation and weak pay growth means that households will feel the squeeze. They say that the pay squeeze has had some benefits for charities, however, as staffing remains one of the biggest elements of charity expenditure, the lack of pay growth has kept a downward pressure on wages. However, the Briefing cautions charities not to depend on this over the long term.

Read Charity Finance Group - Economic Outlook Briefing 2018