What impact will Brexit have on the third sector?

There isn’t a sector of the economy that Brexit and the impending general election won’t touch. With the Tories looking set for victory, and a hard Brexit on the cards, many of us are wondering what impact this will have on the third sector and the people who support it. From shortages in funding to changes in immigration law, here are just some of the ways Brexit will bite the third sector.

Finding volunteers could become more difficult

When cuts are made, many people tighten the purse strings and take on extra shifts to make up the shortfall. This could result in a decrease in the number of volunteers. While some people may have previously had extra time in the week to devote to their favourite projects, they may soon have to choose between voluntary work and paid work to make ends meet.

Harder to raise funds

This goes hand-in-hand with charities struggling to find volunteers. When people’s budgets are stretched, they are often less likely to give money to charity. This could make it more difficult to rely on regular donations and to raise money for charity events.

Changes to immigration law

There has already been a decrease in EU citizens moving to the UK due to uncertainty, and this is only set to get worse once freedom of movement throughout Europe comes to an end. For charities that rely on EU workers and volunteers, this could lead to problems in finding enough people to fill the roles. Even for the EU workers already settled in the UK, waiting times for the EEA PR document could lead to delays in hiring procedures.

Cuts to funding
Anyone currently receiving EU development funds could see their funding cut after Brexit. There is currently no guarantee that funding will be replaced, which leaves many charities in an uncertain situation. Despite reassurances from Philip Hammond that funding will be replaced when Britain leaves the EU, this isn’t backed by any formal policy.

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