Could charity bank accounts be under threat?

Lawyers have criticised budget cuts being made within the charity sector.

Charity bank accounts may be affected by the £900,000 reduction in the Charity Commission’s budget, Third Sector reported.

It covered a charity law conference that was held in the wake of the government announcement.

Delegates at the event were addressed by figures such as Bates, Wells and Braithwaite founder Lord Andrew Phillips and senior partner Stephen Lloyd.

Speakers criticised the cut, which they said is leading to 60 jobs being axed.

Chief executive of the Directory of Social Change Debra Allcock Tyler warned that the cuts would make it more difficult for organisations to merge together or for new ones to be registered.

It could also leave charity bank accounts at risk.

Lord Phillips pointed out that the 2006 Charities Act had increased the Commission’s workload and that this would be exacerbated by staff reductions.

The peer has also criticised the HM Revenue and Custom’s new standards that are intended to stop tax evasion through third sector bodies.

Bates, Wells and Braithwaite claims to have the UK’s biggest group of people dedicated solely to the third sector and social business.ADNFCR-2318-ID-19797831-ADNFCR