We have received a reply from the Chancellor in response to our letter, co-signed by more than 7,300 charities and voluntary organisations, on the proposed changes to employer National Insurance Contributions announced in the budget. In that joint letter we set out the scale of the impact these changes will have on our sector, with our analysis estimating the cost to charities will be £1.4bn.
The number one priority for charities is always the people and communities they support. The burden of these increases, with little time to prepare, means there is a need for many organisations to cut or reduce services, and the knock-on impact it will have on individuals, communities and local economies who rely on us will be devastating.
The reply from the Chancellor acknowledges the vital contribution of civil society while reiterating the scale of the challenge ahead for the new government, and why this decision has been made and cannot be changed.
Although this isn’t the news we want, we’re committed to raising the voice of the sector on this issue so that government understands the very real impact it is having, and where possible will seek to minimise the impact of these changes.
While we do that, it’s important that we commit to developing a stronger partnership between government and the sector in the future. In her letter, the Chancellor recognised our role as a trusted and independent partner.
To strengthen that relationship, it’s vital the sector shares its views on the Covenant Framework, as this will help us agree the basis of our collective future relationship and ensure the sector included in discussions around significant changes that will affect both charities and the people and causes we exist to serve.
Part of partnership is having difficult conversations, and it’s important that we, as an independent sector, continue to challenge where challenge is needed.
Saskia Konynenburg, Executive Director, NCVO
Jane Ide, CEO, ACEVO
Clare Mills, Deputy Chief Executive, CFG