Clause 10

Charities Bill [Lords] – in a Public Bill Committee at 10:45 am on 11 July 2006.

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Interim changes in threshold for registration of small charities

Question proposed, That the clause stand part of the Bill.

Photo of Andrew Turner Andrew Turner Conservative, Isle of Wight

I wish to probe a little further. The clause seems to say that, if for whatever reason we do not introduce clause 9, we can take advantage of some of its benefits by replacing what is in the Charities Act 1993 about the thresholds for charities that have neither permanent endowment nor the use or occupation of any land under section 3(5)(c) or section 3(12) of the Act. I am not sure if the Parliamentary Secretary is saying that there will be delays.

Photo of Ed Miliband Ed Miliband Parliamentary Secretary (Cabinet Office)

There is a simple explanation. We have given a promise, to excepted charities in particular, that clause 9 will not be fully implemented before October 2007. However, we want to have the power to raise from £1,000 to £5,000 the general threshold for the requirement to register before that point. That is the reason why clause 10 will, in essence, explode once clause 9 is implemented. That will not be before October 2007 because that is the promise that has been made to the excepted charities.

Photo of Andrew Turner Andrew Turner Conservative, Isle of Wight

I am grateful to the Minister for that explanation. As all explanations do, it generates a few more questions. Am I correct in understanding that the Minister does not intend to implement proposed new sections 3, 3A and 3B of the 1993 Act and therefore that the changes to excepted charities—or indeed to exempt charities—will not take place until October 2007 but that he does intend to raise the threshold for small charities? Therefore, some charities will be affected because they will be excepted. Is that what he is saying? May I invite the Minister to intervene? If he does not want to intervene, I will keep going.

Photo of Ed Miliband Ed Miliband Parliamentary Secretary (Cabinet Office)

The hon. Gentleman is correct. The provisions relating to excepted and exempt charities will not come into force before October 2007. Since the charities are excepted up to that point, they will not be affected by the increase in the general threshold from £1,000 to £5,000 which will take place before that date. That is simply to allow us to implement the new regulatory ambitions that we all share sooner than October 2007.

Photo of Andrew Turner Andrew Turner Conservative, Isle of Wight

I am content with that explanation.

Question put and agreed to.

Clause 10 ordered to stand part of the Bill.