Commons Leader Lucy Powell has said she hears the concerns of charities who will be subject to a rise in employers’ national insurance, and there will be an update “soon”.
This came in response to calls from the Liberal Democrats to exempt the third sector from the increase announced in last month’s Budget.
The party’s Commons leader, Marie Goldman, said an air ambulance charity in her constituency of Chelmsford could face an additional cost of £100,000, as a result of the tax increase for employers.
Our tax regime for charities in this country are the most generous anywhere in the world, worth just over £6 billion in the last year. But we do hear what she and others are saying and we will continue to support charities in the way that we can
In the Commons, Ms Goldman said: “Earlier this week I received an email from Essex and Herts Air Ambulance, a registered charity that provides helicopter emergency medical services for the critically ill and injured of Essex, Hertfordshire and surrounding areas.
“In the last financial year alone they attended 2,635 missions.
“It costs in excess of £1 million every month to keep the service operational and cover all charitable costs, this would not be possible without the goodwill of people in Essex and Hertfordshire.
“But the recent changes to employers’ national insurance would cost the charity an additional £100,000 per year.
“Will the Leader of the House grant a debate in Government time on how the impact of the rise in employers’ national insurance can be mitigated specifically for the charitable sector? Recognising the vital, sometimes lifesaving, role that this sector plays in all of our communities.”
Ms Powell said the Health Secretary is looking at how the funding boost to the NHS budget “can be used to support other health charities and health services”.
“There will be an update to this House soon,” she added.
Wera Hobhouse, Liberal Democrat MP for Bath, said: “Dorothy House and many charities in my constituency have contacted me with concerns since the increase in national insurance contributions.
“To cover the extra costs they will need to either reduce services or lay off staff, or some charities may even go under.
“Can I add to the call of (Ms Goldman) that we get an urgent statement from the Chancellor of how the third sector will be supported in order to continue to provide the same level of services?”
Ms Powell replied: “She will know that our tax regime for charities in this country are the most generous anywhere in the world, worth just over £6 billion in the last year.
“But we do hear what she and others are saying and we will continue to support charities in the way that we can.”
