STOP NHS charities being nationalised

Jacquie Bell writes :

NHS Charities worth £330 million are at risk of being nationalised under new Government accounting rules to be introduced in April 2010, 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 ministers. Now the Department of Health is intending to use a new International Accounting Standard (IAS 27) to try to take charity money into general NHS funds. Charities involved here include the North East Ambulance Service Trust Fund, 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 over 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.