Charity Commission's budget at risk, says watchdog

Plans to cut the Charity Commission's budget by almost £2m will have "serious consequences" for charities and harm public confidence, the watchdog says. The commission is fighting Treasury demands that it cut its £20.5m budget by £1.7m in 2015-16.

"There is no more fat to cut," according to its chief executive, Sam Younger, who claims a "tipping point" has been reached. "There are no options for implementing a 10 per cent reduction or anything approaching it without impacting our core work. We do not believe this would be acceptable to Parliament or to the public."

Mr Younger calls for new ways of funding, such as "a top-slicing of the £1bn in Gift Aid", or a charity levy.

The watchdog was criticised last week by MPs for failing to prevent a £100m tax avoidance by the Cup Trust charity. Committee chair Margaret Hodge MP said: "We will now undertake yet another thorough investigation of the Charity Commission and whether it is fit for purpose."