No surprises, but budget offers prospect of growth for communities

Today's budget did not hold a lot of surprises, but contrary to last year's emergency budget, this one is focused on promoting growth as well as supporting communities and small businesses. This year's budget has been favourable for the charity sector, with the three items of most note being the Community Investment Tax Relief (CITR) , Gift Aid and inheritance tax relief. We are delighted that the government is continuing with the CITR programme as it is the only widely applicable tax relief available to the social investment market for both corporation tax and income tax payers. The CITR scheme is designed to encourage investment in disadvantaged areas through Community Development Finance Institutions (CDFIs). It gives investors who invest in Charity Bank , or other accredited CDFIs, tax relief on the equivalent of 5% of the amount invested per year, for up to five years. The CITR scheme has encouraged investment in disadvantaged areas, which would have been unlikely to take place without it. Investment can often be more effective for a growing enterprise than grants that may come with strings attached. The budget has given credence to its "big society" message in helping support the voluntary sector by promoting giving and charitable donations. The increase in Gift Aid benefit limits from £500 to £2,500 is a welcome one for the voluntary sector. The simplification of the Gift Aid application process, as well as the ability to claim it on small donations without forms will hopefully put an end to the £750 million that goes unclaimed each year. In addition, the inheritance tax reduction when leaving 10% of your estate to charity will hopefully encourage Britons to consider a charitable donation as part of their estate. As an investor in communities, we hope to see the government's promise of 100,000 places over the next two years for work experience schemes and up to 50,000 more apprenticeships for unemployed young people fulfilled. We also hope that its commitment to promoting entrepreneurship and encouraging small business start-ups will also help to regenerate employment in communities throughout Britain. Geoff Burnand is chief investment officer of Charity Bank This content is brought to you by Guardian Professional.To join the Voluntary Sector Network, click here