Controversial plans in the Budget to limit the amount of tax relief on charitable donations have been dropped after protests from charities, philanthropists and Tory MPs. It follows Treasury u-turns this week on the "pasty tax" and "caravan tax."
A major Tory donor who withdrew his support for the party over the charity tax relief proposals welcomed today's U-turn.
Venture capitalist Jon Moulton, who has given the Conservatives £300,000 since 2004, told BBC Radio 4's World At One: "The idea that we charge into the sources of income for charities without very much thought was just not right.
"It was a bad decision. I am pleased they have had the nerve to actually reverse it.
"It seems to reflect a lack of proper consideration before the stuff was put out. Nobody had thought through the implications of doing it."
Controversial plans to cap tax relief on charitable donations have been scrapped by Chancellor George Osborne.
This is another big Budget U-turn, this time on the charities tax.