Report tells charities to crack down on plague of chuggers Lord Hodgson called on charities and the Government to toughen self-regulation of fundraisers. If charities were unable to regulate themselves, then he warned that statutory laws should be introduced to rein in bad behaviour. Lord Hodgson said: "The Government needs to keep in its power the ability to impose a statutory regime and that is what the charity sector has to understand. If they don't ensure this regime works in a way that provides public confidence then at some point ministers will be forced to pull the trigger... The codes [of conduct] are an absolute mess. It is perfectly clear that chugging has caused difficulties in the high street. It is not just a problem for the public who run the gauntlet but also for shopkeepers because when you have chuggers outside your shop, the public just cross the road. Lord Hodgson advocates strengthening the current complaints procedure which is needlessly complex and involves at least three different bodies: the Fundraising Standards Board (FRSB), the Public Fundraising Regulatory Association and the Institute of Fundraising. He advocates one single regulator which the public can turn to and which will end current confusion. He warns the charity sector to make its changes within six months. Lord Hodgson also recommends the closure of a loophole that means charities need a licence from the local council to collect cash but escape any such restrictions when seeking donations through direct debit. Local authorities, states the report, "should have a significant degree of freedom in determining the frequency and extent of different types of collections." The report entitled "Trusted and Independent: Giving Charity Back to Charities" emphasises the importance of volunteering. Lord Hodgson expresses concern that charities can legally exist in Britain which are run by professional, paid staff with money that entirely comes from the state and with no public backing. "To be a charity is a privilege not a right," he told the Sunday Telegraph. He expressed concern that some charities had launched private commercial enterprises - such as insurance schemes - on the back of their good name. Lord Hodgson suggests a 'traffic lights" system be introduced to help potential donors to decide which charities they should give to. The factors include whether staff are paid and how much; what proportion of money comes from government; what amount goes overseas and where to; and whether the charity is a member of the Fundraising Standards Board, which enforces fundraising codes of conduct. Currently there are 160,000 registered charities in the UK - of which about 40,000 raise money from the public but only around 1,500 are signed up to the FRSB. The Sunday Telegraph highlighted the problems caused by chuggers following an undercover investigation into one of the largest street fundraising companies. Acting on specific concerns, the Sunday Telegraph filmed 'chuggers" working for the company Tag breaking codes of conduct such as harassing people in the street and lying to them to get them to stop. Tag fundraisers also seemingly broke charity law by failing to disclose how much the company was being paid to do the work - in this case on behalf of Marie Curie cancer charity. Tag has since introduced new training for all its fundraisers and issued new guidance on how to approach the public. The company faces an investigation by regulators. The FRSB last night welcomed the report, which will be given to ministers tomorrow [Monday]. Alistair McLean, FRSB's chief executive, said: "Lord Hodgson's review and forthcoming recommendations are a strong and positive step forward in ensuring the UK has a transparent and accountable charity sector underpinned by robust self-regulation. The FRSB is keen to support the sector as we seek to strengthen fundraising regulation which is so essential for engendering the British public's trust and confidence in their charitable giving and charities best practice. The Local Government Association (LGA) said ministers must "now act quickly... so that councils have the necessary means to ensure that charities can prosper without residents and shoppers being unduly harassed." The LGA's Nigun Canver added: "Sadly there's an increasing and significant minority who make a real nuisance of themselves by harassing shoppers and using over-zealous tactics."