Leading philanthropists have warned that the government's plan to limit tax relief on charitable donations will put people off giving money.
In a letter to the Sunday Telegraph, philanthropists and representatives of charities including three members of the Sainsbury family and the chief executive of Marie Curie Cancer Care called the proposals "confusing and dispiriting".
The letter, which was also signed by Gordon Roddick, the widower of the Body Shop founder Anita Roddick, stated: "The government was making progress in encouraging more people to give more of their wealth to charity. The proposal in the budget to cap charity tax reliefs is a brake on philanthropy that may deter future donors."
The government has seen a growing revolt over the plans to limit tax relief on charitable donations to 25% of earnings.
The business secretary, Vince Cable, has warned that the move could harm university funding, and David Davis, the influential Tory backbencher, has said it would be better to ensure charities are scrutinised to make sure they are not being used for tax avoidance.
Nick Clegg, the deputy prime minister, is due to face charities enraged at the plans at an event this week described by critics as a damage limitation exercise.
Tuesday's event has been billed as a celebration of the "important contribution made by the arts to communities" and as "a mark of the coalition's commitment to culture and the arts".
John Summers, chief executive of the Hallé symphony orchestra, whose major donors have expressed concerns, said he believed the frantic activity was a sign that ministers were desperate to kill the row. "My chairman was invited at very short notice to 'celebrate' philanthropy, which feels very much like damage limitation to me," he said.
Comments (…)
Sign in or create your Guardian account to join the discussion