164/97
17 December 1997
TEACH THE WORLD TAX INCENTIVES TO ENCOURAGE EDUCATION AND ANTI-POVERTY PROJECTS IN POOR COUNTRIES
Tax relief on charitable gifts to educational and anti-poverty projects in the poorest countries of the world to mark the Millennium was one of the options to promote economic growth and tackle poverty in the world's poorest countries discussed when Chancellor Gordon Brown met leading Church and voluntary sector bodies at No 11 Downing Street today.
Addressing a seminar to discuss progress with his Mauritius Mandate for early and effective debt relief, Mr Brown said :
"This Christmas up to 150 million of the world's young children will go hungry.
"150 million children under 11 will not be attending school.
"A debt burden that cripples the poorest countries and prevents them from tackling poverty and offering health and educational opportunity to their children is a debt burden that is unfair, inefficient and immoral.
"The Inland Revenue are today issuing a consultation paper canvassing options for these changes. I would welcome views on these options so that I can put a millennium fund to help the poor of the world in place by the beginning of the 1998 financial year."
Mr Brown pledged to deliver his Mauritius Mandate call to the international community.
"The Government has already put debt on the agenda of the G7 and G8. I can promise today that under the UK Presidency we will raise the issue of debt with our European partners."
He also welcomed President of the Board of Trade Margaret Beckett's announcement today that the UK will provide an extra 100 million Pounds in investment insurance to heavily indebted poor (HIPC) countries.
He also noted that for two years the UK export credits available to some HIPC countries will be focused on productive expenditures that support their economic and social development, while the UK seeks a firm international understanding covering all poor countries.
The Chancellor made his announcements at a seminar to discuss progress of the Mauritius Mandate announced to Commonwealth Financial Ministers in September this year. Those attending the seminar included Secretary of State for International Development Clare Short, the Archbishop of Canterbury, Dr George Carey, Cardinal Basil Hume, and representatives of Oxfam, Christian Aid and other religious and voluntary sector organisations committed to tackling Third World poverty.
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Options for tax relief to help poorer countries develop their economies and reduce debt are set out in a consultation document issued today by the Inland Revenue.
NOTES TO EDITORS
1. A wide-ranging review of tax rules for charities was announced on 2 July in the Chancellor's Budget speech. (Budget Press Release HM Treasury 5).
2. Initial responses to the review were sought by 1 December. In his Pre-Budget Report on 25 November, the Chancellor announced that a new consultative document building on these responses would be published in the Spring of 1998.
3. The Chancellor announced the Mauritius Mandate, a five point plan to resolve the debt problems of poor countries and set them on the path to sustainable growth, to Commonwealth Finance Ministers meeting in Mauritius on 16 September in press release 108/97, please see link below.
4. The consultation document published by the Inland Revenue today sets out the issues on which the Chancellor would welcome views by the end of January 1998. These include:
- how a reduction in the gift aid limit for giving to education and anti-poverty projects in poor countries might work;
- arrangements for distributing donations made under the scheme; and
- how this should build on existing tax benefits for charitable giving and efforts by UK charities.
5. Media copies of the consultation document are available from the Inland Revenue press office on 0171 438 6692 and at their site, please see link below. Non-media enquiries to the Inland Revenue should be addressed to 0171 438 6432/6425.
6. Press enquiries to the Treasury about today's announcement, including requests for copies of the Chancellor's address, should be addressed to Charles Keseru on 0171 270 5188.
Press Notices 1997 July to December Index