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Brown's income tax bonus for families is expected to set charities back £71m

The Church of Scotland is one of many charities in Scotland which faces losing millions of pounds because of changes in this week's Budget.

Under the gift aid system charities can claim back income tax a donor has paid on the amount they contribute, so when Gordon Brown cheerfully announced on Wednesday that he was cutting income tax by 2 per cent, the upshot for charitable organisations was a drop in the amount they will receive.

It is reckoned charities across the UK will lose out by £71 million.

The Church of Scotland is set to lose £1.2 million in the cuts, the National Trust for Scotland will lose nearly £200,000 and dozens of smaller Scottish charities such as Edinburgh Zoo will also see income fall.

The Scottish Council of Voluntary Organisations said: "Charities will lose out on gift aid income of up to £71m across the UK and this is not something they can afford to lose.

"We understand the Treasury will be in discussion with other government departments about improving the tax efficient giving system, but they need to ensure that Scotland is not forgotten."

Grant McLennan, spokesman for the Church of Scotland, said the loss of more than £1 million would have a significant effect on the work of the church.

The issue is to be brought up at the General Assembly meeting later this year.

Full story at The Scotsman.