The government must work with charities “as a matter of urgency” to ensure the sector is not further damaged by the inflation crisis, a committee of MPs has said.
The politicians argued that local charities and other civil society bodies faced “an existential threat” as the cost-of-living situation worsened.
The recommendations are included in a report published today by the House of Commons Digital, Culture, Media and Sport Committee, which says the government’s levelling up agenda depends on the financial sustainability of local charities.
Charities, along with other businesses, will receive help with soaring energy bills for the next six months, but no support has been confirmed after March 2023.
Charities have been urged to take part in the government’s consultation on future financial support.
The DCMS committee’s report looks at the government’s progress on “cultural placemaking”, which is defined as “the role of arts, culture and heritage in shaping the places where we live”.
It says the voluntary sector is still feeling the lasting impacts of the Covid-19 pandemic and warns the financial crisis “may (further) reduce the scope of recovery” for civil society.
“Alongside its impact on individuals and households, the cost-of-living crisis poses an existential threat to the cultural, sporting and media organisations and infrastructures that are at the centre of our communities at a time when they need certainty,” it says.
“The government needs to engage with these sectors as a matter of urgency and bring forward targeted support in response to the current crisis, such as through VAT or business rate relief, to prevent exacerbating long-term scarring on organisations already hit hard by Covid-19.”
The committee’s report also raises concerns that charities in some parts of the country are missing out on funding and other support, limiting their ability to engage with the levelling up agenda.
It says: “Our inquiry has found pervasive and persistent barriers to cultural placemaking.
“In terms of funding for cultural organisations and activity, there are concerns about the ongoing geographical disparities, as well as long-term sustainability and accessibility.
“We recommend that the government and its arm’s-length bodies consider how they can better support arts and culture across the country and better incentivise private sector investment.
“We also recommend that the government urgently outline support for at-risk organisations in the culture, media and sport sectors to offset the impact of the ongoing cost-of-living crisis.”