The Budget has reinforced a challenging reality for charities after a raft of policies that could maintain structural headwinds in the sector, Rathbones, one of the UK’s leading charity wealth managers, has warned.
Responding to Chancellor Rachel Reeves’ Budget on Wednesday, Head of Charities Andy Pitt said:
“The Budget has failed to provide any immediate relief to charities and has only underscored the live challenges faced in the sector. Operating costs are rising and pension changes adding to wage burdens, while donor income will shrink as fiscal drag reduces disposable income, hitting regular giving and smaller donations.
“Meanwhile, public sector funding remains under strain, risking further cuts to grants and delays in commissioning – shifting more costs onto charities. Together, this represents scant relief for a sector already under strain.
“Now more than ever, charities need resilience, long-term thinking and careful stewardship to ensure they are able to meet the demand of their patrons and deliver the critical services so many rely on. Charities cannot control fiscal policy, but they can control how they prepare for volatility. Diversification, disciplined investment, and long-term planning are not optional, they are essential to safeguarding mission and impact.”
Charities have entrusted their investments with Rathbones for over 100 years; Rathbones is responsible for £9.3 billion in funds under management for more than 3,000 charities.
