Specifically, to ensure the most vulnerable and disadvantaged people are better protected, and that charities can continue to provide critical services.

Within the recent budget, the chancellor outlined the government's tax and spending plans, including a further cut to National Insurance, an increase in the VAT registration threshold, and protections for charities claiming gift aid.

The budget has highlighted some changes within the sector:

Digital Markets, Competition and Consumers Bill

There were concerns that the Digital Markets, Competition and Consumers Bill – currently with the House of Lords to debate – would impact charities’ ability to claim gift aid. The government will amend gift aid legislation to ensure charities can continue to claim when, as expected, the bill is passed in the House of Lords.

Public spending

The Chancellor committed to a keeping a 1% increase in public spending above inflation. Some have questioned whether this is sufficient when taking into account population growth and the fact that certain sectors have protected budgets, for example health and education.

VAT threshold

The Chancellor also announced the threshold at which VAT registration is applicable would increase from £85,000 to £90,000. This should result in smaller organisations and charities paying less tax without the costly obligation of VAT registration.

Other key announcements for charity sector:

• The government announced £45m of funding for medical research charities, including £3m for Cancer Research UK
• The government will make “a new £20m investment in social finance” to help build up to 3,000 new homes
• Pledged to make permanent a higher rate of tax relief for theatres, orchestras, museums, and galleries
• The Household Support Fund, which allows local councils to help families via food banks, warm spaces and food vouchers will be extended
• Pledged £105m over the next four years to build 15 new special free schools