Charities banned from using taxpayer cash for political ends

CHARITIES in receipt of government grants will be banned from using these funds to engage in political lobbying,

The Daily Telegraph can disclose. A new clause to be inserted into all future grant agreements will make sure that taxpayer funds are spent on improving people’s lives and good causes, rather than lobbying for new regulations or more government funding.

It will not prevent organisations from using their own privately raised funds to campaign as they see fit.

The Institute of Economic Affairs, a centre-Right think tank, has undertaken extensive research on how taxpayers’ money given to pressure groups is paid to fund lobbying campaigns on behalf of policies such as a sugar tax and environment causes.

Officials hope that the clause will protect freedom of speech while

stopping taxpayers’ money being diverted away from good causes.

The new rules have successfully been piloted by the Department for Communities over the past year.

Matt Hancock, the Cabinet Office minister, told The Daily Telegraph: “Taxpayers’ money must be spent on improving people’s lives and spreading opportunities, not wasted on the farce of government lobbying government.

“The public sector never lobbies for lower taxes and less state spending, and it’s a zero sum game if Peter is robbed to pay Paul.”

Chris Snowden, head of lifestyle economics at the institute, said: “This is very good news for taxpayers who will no longer be forced to pay for the government to lobby itself.”

Charities are under fire after a series of scandals. This week Age UK was accused of promoting less than favourable tariffs to the elderly in return for cash from a major energy company.

Last year Olive Cooke, 92, one of Britain’s longest serving poppy sellers, who took her own life after receiving repeated requests for money from charities.

Months later Kids Company folded amid a barrage of accusations of mismanagement despite being given millions of pounds in government grants.

Experts said the Charity Commission, which regulates the £90billion voluntary sector, needed reforming.

Gina Miller, from the True and Fair Foundation, which campaigns for greater transparency, said the sector was “completely out of control”.

But Michelle Roberts, the commission’s director of investigations, monitoring and enforcement, said it only had “limited” powers on fund-raising, which is still self-regulated. She said it wanted new powers to cover “the loopholes in our legislative armoury”.