Government propose £500m fund for charities

Danny Kruger, the Conservative MP for Devizes, has completed his review into how the charity sector can best support the UK recover from the Covid-19 pandemic.

His report makes multiple recommendations, including creating a £500 million fund to support the charities and the establishment of a £2 billion endowment fund, the Community Recovery Fund, to support disadvantaged communities.

The Community Recovery Fund would be financed through the now-defunct National Fund, which was established in 1928 with an anonymous donation of £500,000 and the aim of paying off the national debt.

The fund stood at £519,707,831 on 5 April 2019 but, with the national debt approaching £2 trillion, it is unlikely to ever achieve its original goal.

The report also proposes the release of a further £2 billion from dormant insurance accounts to support the creation of a new endowment, provisionally labelled the “Levelling Up Communities” (LUC) Fund.

The LUC Fund should be directed to long-term, transformational projects in local communities and its distribution strategy should be set by parliament, Kruger stresses the importance of taking action to support embattled charities and social enterprises.

Charities have largely welcomed the report, but there was some concern in regard to the proposed £500m near-term financial support for the sector, over whether and when the government might adopt the report’s recommendations.

Danny Kruger’s report ”Levelling up our communities: proposals for a new social covenant” can be viewed here.

Speak to a systems accountant today

Search Insights