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Surely chancellor Osborne realises there is nothing to be gained from alienating Britain’s 164,000 charities, two million charity workers and 20 million volunteers? Asks Asheem Singh. Photograph: Alamy
Surely chancellor Osborne realises there is nothing to be gained from alienating Britain’s 164,000 charities, two million charity workers and 20 million volunteers? Asks Asheem Singh. Photograph: Alamy

"A vibrant economy needs an active third sector" - charities tell Osborne

This article is more than 9 years old

Charities including food bank organisation The Trussell Trust have plenty to say to the chancellor after he branded charities ‘anti-business’...

David McAuley, chief executive of Trussell Trust

“Our charity has created jobs and volunteering opportunities for hundreds of people across the UK”

We were disappointed to read that the chancellor feels it appropriate to attack charities as anti-business and anti-economic prosperity. The Trussell Trust is proud of the fruitful partnerships that exist between itself and high profile names in the business sector. My team and I have worked hard to increase these relationships and we hope that these will continue to grow.

Operating on a social franchise model, the Trussell Trust runs social enterprise projects, generating income for the foodbanks. The charity has created jobs and volunteering opportunities for hundreds of people across the UK. For this, we receive no government funding but rely on individual donors, grant making bodies, trading income and businesses.

Charities are seen by many as a great example of Big Society, an initiative encouraged by the prime minister. I am not clear as to why the chancellor would make such statements as have been reported and can only assume he disagrees with our decision to speak out for the less well off in society. We believe the Trussell Trust’s award-winning social franchise draws on the best practices of both business and charity sectors. We feel that the chancellor’s remarks are not reflective of the charity sector. Like many charities, The Trussell Trust welcomes open, frank and constructive discussion with policy makers and politicians, we do not feel that the chancellor’s remarks fall into this category.

Dai Powell, chief executive of HCT Group

“As both a high-impact charity and a successful business, perhaps Mr Osborne believes we are divided against ourselves?”

In trying to place a divide between charities and businesses, it may have escaped George Osborne’s notice that there are around 70,000 social enterprises in the UK, employing approximately a million people, all trading for an explicit social purpose – a significant proportion of these social enterprises are registered charities.

HCT Group is a registered charity, but as a social enterprise we earn 99% of our revenue through free market trade – delivering bus contracts won in the marketplace against mainstream competition. We then reinvest profits back into community transport services and training for the long term unemployed. As both a high-impact charity and a successful business, perhaps Mr Osborne believes we are divided against ourselves?

As both a charity and a business, we can’t deny that business creates wealth. Instead, social enterprises are businesses that have a different view of what that wealth is for – for public benefit, not for private profit. With social enterprises represented in an increasing number of markets, customers are being presented with choices about how they spend their money – and whether by that choice they can help to build a fairer society. This is why the campaign by the Social Economy Alliance is so important. We’re all for Oxfam’s campaigning edge, but we also think that a great way to change the behaviour of big business is to take market share from it.

Eugenie Teasley, chief executive of Spark & Mettle

“The countries that have the greatest prosperity tend to be those who have an eye on improving, not just their businesses’ bottom line, but the social and environmental conditions for all.”

In 2011 - during the nadir of the economic crisis - I decided to set up an organisation that had not profit but purpose at its core. Spark+Mettle is a youth charity that has been working, for the last three years, to enable less privileged 18–24 year olds to be successful and happy. To prosper, even. So I find it galling for George Osbourne to discredit charities and build a wall between them and businesses.

In their different ways, both charities and businesses exist to deliver prosperity for “the people and generations to come” (whether we focus on a solely monetary definition or a broader one). It’s a dance between the two, and now the lines blur more as businesses look to widen their social impact beyond a limp CSR arm, and charities look to generate profit that can be used to expand their core charitable work.

Personally, I have never had to be more enterprising in my life than when establishing Spark+Mettle. Like many other third sector leaders, I run an organisation that is a registered charity, but I don’t want it to be treated like one. I am constantly looking for ways to generate revenue so that we can become self-sustaining in the long term. And I am hugely grateful for the philanthropic support from trusts, foundations and donors that have given me and the organisation the leg-up to get started.

The countries that have the greatest prosperity tend to be those who have an eye on improving, not just their businesses’ bottom line, but the social and environmental conditions for all too. George Osbourne needs to look up from the spreadsheets and see the bigger picture.

Asheem Singh, director of policy at ACEVO (Association of Chief Executives of Voluntary Organisations)

“A vibrant economy and strong society needs an active third sector. I’m sure the chancellor agrees.”

The chancellor has clearly misspoken. He is part of a government whose plan for public services in this country involves well-run, professional charities working with government and business to deliver for the UK. Indeed, it is impossible to think how public services can be run effectively without the professionalism and passion of our country’s charities and social enterprises. There is nothing to be gained from setting charity against business: the future lies in collaboration between the sectors, not opposition.

Obviously we’re close to an election and no doubt all political parties are engaged in the process of drawing red lines. The Conservatives had a good conference and while it is not my job to second-guess the chancellor, perhaps he switched off for a moment.

But he is a savvy political operator and will know that there is nothing to be gained from alienating Britain’s 164,000 charities, two million charity workers and 20 million volunteers.

There is cross party consensus on the need for political parties to work with the voluntary sector. We’ll be writing to the chancellor on behalf of the sector to get the record set straight. A vibrant economy and strong society needs an active third sector. I’m sure he agrees.

Some reaction on Twitter to George Osborne’s comments

Osborne warns business to beware! Act now, charities are set to undercut your profits! http://t.co/1W60eCRC01

— Peter Thurlow (@PeterThurlow) October 3, 2014

Why has this govt got such a beef with charities? That's the second attack in a couple of weeks http://t.co/Juz5a6AVUP

— Paul McGarvey (@itspaulmcgroovy) October 3, 2014

Trying to pit charities vs business won't work - intelligent charities and businesses collaborate - @ncvo on Osborne: http://t.co/oIZifnU2M7

— Aidan Warner (@ncvoaidan) October 3, 2014

@George_Osborne read Mark Carney's speech on Inclusive Capitalism - charities and #socent campaign 4 what's essential to healthy capitalism.

— Social Enterprise UK (@SocialEnt_UK) October 4, 2014

Osborne brands charities anti-business @guardian. How does this fit with #BigSociety @george_osborne @RobWilson_RDG? http://t.co/ZRVTVUnkZh

— Jason Mollring (@jmollring) October 4, 2014

More on this story

More on this story

  • Five things charities need to know from the party conferences

  • George Osborne faces backlash after branding charities ‘anti-business’

  • Osborne claims businesses must defend free market from unions and charities

  • Are charities too political?

  • George Osborne’s narrow view of charities’ business

  • Charities like Oxfam will not be bullied into silence

  • George Osborne aims at tax credits and benefits in new squeeze on working poor

  • George Osborne: UK working-age benefits to be frozen for two years

  • Our bullying corporations are the new enemy within

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