Job losses put pressure on charities
The bank of England has suggested that the UK economic recovery, after an initial bounce over the next few months, will be a long, slow slog...
...with the pace of the upturn held back by persistent structural problems such as credit shortages, frail banks, sticky unemployment and cuts in government spending.
A particular worry in this environment is unemployment which is likely to rise to 10 per cent of the workforce and then reduce only very slowly because of the insipid pace of growth. Already there are population cohorts and regions which are suffering disproportionately, 28.6 per cent of 16/17 year-olds are without employment and the North East and West Midlands have been hit hard by job losses.
This is an environment where regional and sector charities are going to experience expanded requests for support over an extended period at a time when revenue flows – from donors, government and investment is under pressure.
A review of investment policy would be prudent against this backcloth to examine the extent to which strategy adjustments can ease cash flow pressures.
Author: John Kelly
John Kelly is head of client investment at CCLA.
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