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Finance Bill

I congratulate all hon. Members on their maiden speeches. I have been approached by a charity in my constituency of Ilford, North, which has brought to my attention problems surrounding old manuscripts and books. Would it be possible to clarify in the wind-up debate whether new subsection 5G in clause 11 on gift aid would apply? My second point concerns VAT on charities. I understand the difficulties, but I was saddened by the VAT provisions and wonder whether it would be possible to abolish them for charities where it could be proved that their programmes were based only in the UK and were oriented towards social, educational or welfare purposes. That would help many charities and would mean a saving of millions of pounds for them. As a previous director of a charity—I declare an interest, as someone who is still involved in charities—I fully understand the problems that charities face. Programmes such as distance learning projects, which link schools across the world, create a better understanding not only of religious but of other means of charitable provision, and they certainly benefit the schools involved. A finite amount of money is available from philanthropy and any movement to provide further help would be welcome. As I have already said, I am fully aware of the financial difficulties that might be caused by my suggestion. Until recently, I was a cabinet member for the community in the London borough of Redbridge, so I know that large sums of money are given to charities through the voluntary sector grants programme. The suggestion that I have made would mean that some of those grants would no longer be needed, so they could be given to other groups in the voluntary sector. That would provide a better use of the taxes raised both locally and nationally. As I said at the start, I am fully aware of the potential problems, but, like myself, the Economic Secretary has also been involved in charities for many years and understands what they have to grapple with when they face VAT costs. I would really like the matter to be looked into further, notwithstanding the difficulties.