Welcome to a special post-Budget update!
In the Budget on 12 March, Alistair Darling, the Chancellor of the Exchequer, ignored the pleas of sports clubs, governing bodies, CCPR and parliamentarians to deliver Subs for Clubs - the campaign which calls on the Government to allow CASCs to claim Gift Aid on their junior subscriptions. The concession, like that utilised by the National Trust on its subscriptions (both for adults and families), would have cost the Treasury as little as £1m in its first year. However, despite the strength of the campaign the proposal was not taken up by the Treasury this time.
Ben Andersen-Tuffnell, coordinator of the campaign, was bitterly disappointed: "The Chancellor clearly left his sports kit at home on Budget Day. The Government has missed a great opportunity to reward sports clubs that actively engage with young people. The cost of the proposal would be miniscule when compared to the total cost of Gift Aid (over £830m in 06/07) and would have had a major impact on grassroots sport."
CCPR and cascinfo.co.uk would like to take this opportunity to thank everyone for their support of their campaign.
Impact on sport
Despite this disappointment, there were several items of particular importance for the sports sector:
Gift Aid As of 1 April 2008, the basic rate of income tax will fall by two pence. This would have affected the amount of Gift Aid that could be claimed on donations to CASCs and charities. However, over the next three years, Gift Aid will continue to be paid at a transitional rate of 22 per cent. This will be a relief to those organisations concerned about the drop in income.
Alongside the Budget, the Government published its response to the consultation on Gift Aid, which CCPR responded to highlighting the case for Subs for Clubs. The response notes that the Government will now implement a package of measures aimed at increasing take-up of Gift Aid over the long-term, including major reform to the auditing process and the launch of the Gift Aid web information service - www.direct.gov.uk/giftaid.
CCPR, through its CASC-dedicated website, has already developed guidance for clubs seeking to maximise the usage of Gift Aid. The guidance is available here.
Gambling duties
Sports clubs should note that from 12 March, all rates of amusement machine licence duty will increase in line with inflation; and gaming duty bands will increase in line with inflation for accounting periods starting on or after 1 April 2008. Clubs with bars should also be aware that a six per cent increase in all alcohol duty rates will come into effect on 17 March 2008. This will add 4 pence to the price of a pint of beer, 55 pence to the price of a bottle of spirits and 14 pence to the price of a bottle of wine.
Fuel duty
Like any sector, the sports world will be hit by increased fuel costs. Although the fuel duty rise planned for April has been postponed until October, the Chancellor announced an increase in fuel duty of ½ pence per litre in real terms from 2010.