- 13 updates
The former Tory Chancellor Lord Lawson has welcomed the Government's u-turn on the charity tax.
He said he believes the Chancellor George Osborne has "taken his eye off the ball" in this case, in part because of the need to negotiate everything with his Liberal Democrat Coalition partners.
He told BBC Radio 4: "The great thing is that George [Osborne], on charities in particular which in my judgment was the most important thing - the biggest error, he has done the right thing and has had the courage to do the right thing. I am delighted."
Chancellor George Osborne has conceded that the proposed plans to cap tax relief on charitable donations would have damaged charities.
Roland Rudd, Founder of Legacy 10, an independent campaign that encourages charitable giving has praised Jeremy Hunt for his role in the Government's u-turn on charity 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."
David Bull, the Executive Director of UNICEF UK, has welcomed the Government's u-turn on the charity tax. He said:
Labour has accused George Osborne of trying to "bury bad news" by unveiling his latest climbdown while Culture Secretary Jeremy Hunt was giving evidence to the Leveson Inquiry.
The Chancellor has explained the Government's U-turn on charitable tax relief:
George Osborne's decision to scrap the charity tax cap came following weeks of talks with charities.
Since the Budget announcement, the Treasury has been holding discussions with charities and major donors to discuss the impact they believed the cap could have on charitable giving.
Meanwhile, more than 1,000 charities signed up to a call by the Charities Aid Foundation (CAF) for the Government to think again.
Latest ITV News reports
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.