It is a pleasure to serve under your chairmanship, Mr Twigg. It is also a pleasure to take part in this important debate on Government support for membership-based charity organisation. I thank my hon. Friend Dame Caroline Dinenage for securing such an important debate and for her opening remarks. It was apparent on hearing my hon. Friend speak just how important some of our national treasures are, what it is to be British, and how those treasures are entrusted to—and very often in the care of—membership-based charities.

As someone who used to work for a charity for six years before entering this place, I know the amazing work they do in all aspects of life. Many charities, particularly those in the cultural and heritage sectors, continue to be some of the largest membership-based organisations in the UK. Museums, galleries and libraries also contributed over £1.1 billion in gross value added to the UK economy in 2023 and employed nearly 100,000 people in 2024, while civil society contributed £18.5 billion and employed nearly 1 million people.

However, many membership-based charities are now facing growing financial challenges because of impending regulatory changes, the knock-on effect of Government cuts to the Department for Culture, Media and Sport’s budget and the continued effect of Labour’s increases to employer’s national insurance contributions.

One of the most immediate challenges facing membership-based charity organisations is the impending changes to subscription contracts as a result of the Digital Markets, Competition and Consumers Act 2024—as we have heard—and the Government’s failure so far to close a loophole that was identified when that Act was taken through Parliament. The introduction of a 14-day cooling-off period jeopardises the future value of membership as a sustainable income as it will create a loophole allowing people to gain access to venues, exhibitions or creative content and then cancel their membership after enjoying all the benefits within the first 14 days. My hon. Friend the Member for Gosport articulated that problem perfectly. Those cancelled memberships also mean that charities will lose their ability to claim gift aid on membership income.

As I said, that problem was identified when the Act was going through Parliament and the last Conservative Government committed to solve it by introducing regulations to close that loophole. Multiple times throughout the year, Ministers in the current Government have announced their intention to amend Gift Aid rules to ensure that charities can continue to claim it on membership subscriptions after the DMCCA comes into force. However, it is disappointing that legislation to that effect is still yet to materialise a year and a half after the change of Government. Can the Minister therefore confirm whether new legislation will in fact be necessary? If so, when we can expect to see it?

In July, some of the UK’s most prominent charities and cultural organisations, including the National Trust, the Tate, the Victoria and Albert Museum, Historic Royal Palaces, the Royal Horticultural Society, the Royal British Legion and the Wildlife Trusts, wrote to the Prime Minister to highlight the impact of the problem on their valuable work. Has the Prime Minister replied to the letter, and what action have the Government outlined to remedy the issue?

Although the Government have consulted on the implementation of the new subscription contracts regime, the consultation closed almost a year ago and those who contributed are still waiting for a response. The uncertainty for charities and cultural organisations, which need to set their budgets and make plans for next year and beyond, is having a chilling effect on some of the most cherished organisations in our country. Can the Minister therefore confirm whether the Government intend to waive the cooling-off period for cancelling a subscription for membership-based charities? When will they introduce legislation to do that if they consider it necessary?

Shortly before the Chancellor’s jobs tax took effect—which the National Council for Voluntary Organisations warned would cost charities £1.4 billion—we in the Opposition warned about the crushing effect of these new taxes. It is disappointing that the Government chose to press on with them, which has forced charities to reduce their staff numbers and scale back their services. Ministers have so far declined to outline what assessment, if any, the Government have made of the effect of their tax increases insofar as they affect the charity sector.

I urge the Minister to use this opportunity to provide much-needed and long-overdue certainty for membership-based charities on how the Government will support them and ensure they are not taken advantage of as a result of the new subscription rules. I endorse all the questions put to the Minister by my hon. Friend the Member for Gosport.