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The Brexit deal is bad for charities

The withdrawal agreement leaves charities with many of the costs of Brexit, but none of the potential benefits, leaving UK charities worse off than if remaining in the EU, says Charity Finance Group.

On all of the key issues, the deal fails to deliver for charities:

  • Funding: The Government has provided no further clarity on the United Kingdom Shared Prosperity Fund (UKSPF) which will replace EU Structural and Investment Funding (ESF), and no assurance that levels of funding to charities will remain the same.
  • Immigration: An end to free movement, and further restrictions on immigration, will make it even harder for charities to hire the workers they need. This is a significant risk for charities already experiencing chronic labour shortages such as social and residential care and education.
  • Tax: The withdrawal agreement does not allow the flexibility required for the UK to address irrecoverable VAT for charities, which is estimated to cost the sector £1.5bn a year.
  • State aid: The deal makes clear that the UK will be required to have ongoing harmonisation of EU rules on state aid, which does not allow for any flexibility for the current rules, where charities are often penalised.

Read Charity Finance Group - Why the Brexit deal will be bad for charities