The cut in the UK basic rate of tax will cost the charity sector millions in lost relief. Tax cutting is not a panacea.
There is a simple solution:
1) Assume all gifts to charity are out of income taxed at basic rate (which is not unfair)
2) deny tax relief at higher rate on charitable contributions, which the taxpayer enjoys but for which the charity gets no benefit.
Option 1 would increase income to charity and massively reduce admin for them and the government.
Option 2 would pay for it and simplify tax returns.
So, a double benefit - tax simplification and more for good causes. I'd hope that could go through without objection.
Yes - it would create opportunity for abuse of charity status - I know. But let's be clear - that exists anyway and it's the job of the Revenue and Charity Commission to tackle it. If all the staff currently checking Gift Aid donations were released for this there would be more than enough resources, I'm sure.