6-07-04
Gift Aid – The Final Countdown?
On Thursday 8 April, John Barrett, MP for
Edinburgh West launched a petition opposing the Government's
proposed amendments
to Gift Aid of wildlife and heritage charities – amendments
which would result in a serious loss of income and jeopardise
not only many important projects, but many attractions themselves.
Now the final countdown to the decision is upon us, as on
Monday 12 July the Chancellor will reveal the results of
the Spending Review to the House of Commons. It is likely
that an announcement on the position of charities and day
memberships will be made at this time.
In light of this forthcoming announcement, Mr Barrett felt
the time was right to make the people's voice heard. Armed
with a petition containing over 5,000 names against the withdrawal
of Gift Aid, Mr Barrett made his way to 10 Downing Street. The
petition has been in the reception at Edinburgh Zoo for visitors
to sign over the past two months.
In a statement, John Barrett said:
“The support I have received on this issue, not just from
my own constituents but from people across Scotland has been
overwhelming.
“To have over 5,000 people sign this petition in such a short
period of time shows the depth of feeling here. It is clear
people do not want to see their favourite charitable attractions
losing out for what will be minimal savings by Treasury standards.
That money is better kept where it is, with charities like
Edinburgh Zoo, so they can continue with their excellent
work.
“Gordon Brown has a chance to make a lot of people very happy
when he makes his statement on the Spending Review next week.
Common sense and basic human decency means he should reverse
his plans and allow Edinburgh Zoo and others to keep claiming
Gift Aid on day memberships.”
Editor's notes
Gift Aid
Gift Aid is a tax efficient scheme established by the Government
in 1989 to encourage donations to charity. Changes were
introduced in the 2000 Budget to make such giving even more
attractive. These explicitly included a provision, published
in the Finance Act (2000), to allow day membership admission
to a wildlife or heritage attraction, to become eligible
for the Gift Aid scheme. This allows charities to reclaim
up to 28p for every £1 spent by day members on their
admission.
Budget 2004
Gordon Brown announced his intention to "close the loophole" which
had allowed wildlife and heritage charities to claim Gift
Aid on day memberships. However, he also indicated that he
understood how worthwhile the work of these charities is,
and he offered a period of consultation with the charities
which will be affected, until June.
Edinburgh Zoo
The Zoo is owned and managed by the Royal Zoological Society
of Scotland (RZSS), a registered charity (SC 004064),
founded in 1909, whose principal aims are educational and
the support
of animal and habitat conservation. Edinburgh Zoo opened
in 1913. It receives no core funding, only a grant of £36,000
from the City of Edinburgh Council in support of its educational
activities, representing less than 1% of its annual turnover.
It is Scotland's second most popular paying visitor attraction,
with over 600,000 visitors in 2003.
The RZSS also owns and manages the Highland Wildlife Park,
one of the most successful attractions in the Highlands,
and this will be similarly affected by withdrawal of
Gift Aid.
Master Plan
For our Master Plan, which will see the complete redevelopment
of the Zoo at an estimated cost of £58m over the next
20 years, we have calculated an income of £12.8m from
the Gift Aid scheme. Without this funding, the Master Plan
is seriously jeopardised, and with it the outlook for conservation,
both local and global, as well as the economic impact of
this successful and much loved tourism operation.
Other charities affected
Other wildlife and heritage charities in Scotland which
will be affected by the withdrawal of Gift Aid include:
the Royal
Yacht Britannia, Scottish Seabird Centre, The National
Trust for Scotland, the Scottish Mining Museum, Dundee
Discovery
and Verdant Works.