The Spring Statement 2025 has left the charity sector disappointed, with many organisations expressing concerns about the lack of targeted support amid ongoing financial pressures. Although the Chancellor announced various economic measures, there were no significant provisions to address the challenges facing the voluntary sector, causing many to worry about the future sustainability of charities.

Despite urgent calls from sector leaders for support, the Spring Statement did not include any direct funding or relief measures for charities. Instead, the government’s focus was on broader economic growth policies, tax adjustments, and spending plans that will indirectly affect the sector. Key points relevant to charities include:

• No additional charity-specific support: Unlike previous budgets that introduced measures such as energy relief or emergency funding for charities, this statement contained no new financial support to help charities navigate rising operational costs
• Tax and VAT measures: The government confirmed adjustments to tax thresholds and VAT rules, but there was no extension of VAT relief or targeted tax cuts that many charities had lobbied for. Without further tax incentives, charities will continue to face difficulties maximizing their financial resources
• Public spending constraints: The Chancellor reiterated the government’s commitment to fiscal discipline, meaning continued pressure on public sector grants and contracts—a major source of funding for many charities. With local councils also facing budgetary constraints, there are concerns that funding cuts will further impact service delivery
• Cost of living and demand for services: Although the government outlined plans for economic growth and household support, these measures do not significantly alleviate the financial burdens facing low-income groups. Many charities fear that demand for their services, particularly in poverty alleviation and social care, will remain high without corresponding increases in funding.

To view the Shaw Gibbs Spring Statement summary see here.