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Tax evasion crackdown 'threatens early intervention'

Attempts to fund early intervention work through social finance would be compromised by a government bid to crack down on tax evasion through charitable donations, it has been claimed.

Chancellor George Osborne is planning to limit tax breaks for donations to good causes.

But Graham Allen MP, who led a review on early intervention for the government, has hit out at the idea, suggesting such a move would be “a body blow” to efforts to create an Early Intervention Foundation. 

He said the success of a planned Early Intervention Foundation will depend on bringing non-government funding to bear and developing the social finance market, something Osborne’s plans could hamper.

“Philanthropy is often the blue touch paper that ignites wider interest from non-governmental funders,” Allen said.

“For the Treasury to make it harder for philanthropy to play that role would fly in the face of what many other parts of government are trying to build within the economy. 

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