NHS charities worth £330m are at risk of being nationalised under new government accounting rules to be introduced this April, meaning that charitable donations will count as gifts to the state.
People donate to charities on the understanding that it is up to those bodies to decide how to spend their money, not government ministers.
Now, the Department of Health is planning to use a new International Accounting Standard (IAS 27) to try to take charity money into general NHS funds.
Local charities involved include the North-East Ambulance Service Trust Fund, the South Tees Hospitals General Charities Fund and other related charities.
The Government could potentially use these monies to cover up cuts in future health spending by replacing public funds with charitable donations.
The Charity Commission has been voicing its concern for more than a year, but the Government has not been listening.
The commission believes that IAS 27 is intended for the commercial sector rather than public bodies and that the consolidation of NHS charities’ funds with those of their parent NHS body is not required.
It is vital that the Treasury and Cabinet Office come to a settlement that does not fetter these often historical trust funds.
Jacquie Bell, Liberal Democrat Prospective Parliamentary Candidate, Stockton South
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