Not for profit

One of the main themes of this PBR was to help businesses manage their finances more efficiently during the forthcoming recession. The focus was largely on small and medium sized businesses. With the main prize being a cut in VAT from 17.5% to 15%, for the majority of organisation in this sector, this should effectively result in a 2.5% reduction to a large part of its cost base for the next 13 months. These organisations should also consider deferring expenditure until 1 December to take advantage of the reduced rate, and ask for refunds of VAT already paid on services such as rent which they have paid for periods which span 1 December. 

Yet all sectors, both private and public  have been affected and will continue to be affected by this economic downturn. The PBR failed to include the growing not for profit and charity sector and was not mentioned explicitly. The only aspect that  may be of value to not for profit organisations is that the Government has stated that it is committed to easing access to credit and reducing administrative burdens for companies.