UK Budget cannot be balanced on the back of Scotland’s charities
by It’s time for Labour’s Chancellor, Rachel Reeves, to be upfront about where the tax burden will fall in her plans to hike National Insurance contributions.
The SNP has been vocal in demanding the UK Government urgently offers clarity about which organisations will be liable for the hike in employer National Insurance contributions.
NEW: The UK Budget ‘cannot be balanced on the back of Scotland’s charities’, John Swinney has said
The First Minister called on the UK Government to reimburse charities for the cost of increasing employers’ national insurance pic.twitter.com/qUbqFBGDkv
— The National (@ScotNational) November 7, 2024
The Chancellor must be able to answer whether vital organisations and employers such as GPs, hospices, care homes, and charities will be included in the tax hike.
The SNP has already highlighted the brutal impact this tax increase would have on charities and care homes – with both sectors warning that deep cuts will have to be made to the services they provide.
Local government – the frontline of everyday services Scots rely on – is also facing a huge bill if the UK Government neglects to fully fund its reckless plans.
And a penalty for charities would be crippling in the current climate, where many hardworking, under-resourced and overworked organisations are already facing significant challenges.
First Minister John Swinney says he is concerned that changes made to employers’ National Insurance contributions in the Budget will have an impact on the delivery of social care.
He says the Labour Party have “turned their back on those who depend on social care”. #FMQs pic.twitter.com/zOStWBajDp
— Holyrood magazine (@HolyroodDaily) November 14, 2024
Charities in Scotland face being hammered by Labour’s decision to increase employer National Insurance contributions – with the Scottish Council for Voluntary Organisations (SCVO) warning it will cost Scotland’s voluntary sector £75 million.
New evidence from the SCVO has shown that the Scottish SPCA is set to lose £400,000 due to this measure – with charities across Scotland warning that they will be forced to scale back on vital services if they are not exempted.
Four Square, a homeless charity from Edinburgh, also claimed they are set to be hit to the tune of £67,000, and are now being forced to consider staff cuts.
These negative outcomes lie squarely at the door of the UK Government, with the SNP demanding the Labour Chancellor u-turn on her devastating Budget decision.
🥀 Labour’s National Insurance increase on employers may cost Scotlands public sector up to £500 million.
🏴 The SNP is clear – Scotland must receive funding for this UK decision – and clarity is essential ahead of the Scottish Budget.
🗣️ @Audrey4ASNK raised this at FMQs
— The SNP Media (@theSNPMedia) November 7, 2024
Marie Curie, the UK’s leading end-of-life charity, has warned that the increase to employer National Insurance contributions will cost the charity an additional £2.92million a year and warns that without further support, the only option left will be reducing services.
Charities across Scotland play a vital role in our society, supporting people in our communities, championing causes and creating positive change – it is not right that they may have to scale back their operations due to the decisions of the UK Labour Government.
Labour promised change. The same old Tory tactic of dodging and distraction just won’t wash.
Voters deserve so much better.