The Charity Commission has been forced to reverse its public position that charities could never again fund Cage, a group that campaigns for communities affected by the war on terror, after a hearing in the high court.

In March the regulator, which oversees 170,000 charities, intervened to choke off future funds from the voluntary sector to Cage. Two charities – the Joseph Rowntree Charitable Trust (JRCT) and the Roddick Foundation – eventually pledged not to "fund Cage either now or in the future".

The JRCT had given Cage £270,000 between 2007 and 2014, and the Roddick Foundation granted the organisation £120,000 between 2009 and 2012. The JRCT, which at first resisted demands, claimed it had come under "acute regulatory pressure" to accept the regulator's requirement – and had been threatened with a far-reaching investigation if it refused to comply.

Read the complete original version of this item...