48 organisations across Scotland have backed a letter raising concerns.
Scottish public sector and voluntary organisations have come together to raise concerns at the impact of the impending increase to employer National Insurance contributions.
Organisations from across civic society in Scotland have backed a letter to the UK Chancellor of the Exchequer, Rachel Reeves, calling for funding to fully cover the additional costs they face.
At present, the estimated cost to organisations delivering public services in Scotland to cover the increase in employer National Insurance contributions could amount to £700 million.
The joint letter from First Minister John Swinney and COSLA President Shona Morrison has been supported by 48 organisations including the Scottish Council for Voluntary Organisations (SCVO), Scottish Trades Union Congress, and other charitable bodies.
The First Minister said: “I would like to thank all the public and voluntary sector organisations who have come together to call in a unified voice for this decision to be reconsidered.
“We are disappointed that the UK Government did not engage with the Scottish Government on the change to employers National Insurance Contributions and we are concerned about the additional pressure it places on all employers. The Scottish Budget is expected to pass within weeks, and alongside local authorities, we need clarity.
“We will continue to press the UK Government to raise our deep concern about the implications of the increase to employer National Insurance contributions for organisations across Scotland, and the risk to the vital services they provide if these additional costs are not fully funded.”
SCVO chief executive Anna Fowlie added: “Coming on top of rising costs and fragile funding, this ill-thought-through rise in the cost of employing staff is a body blow to many Scottish charities.
“Employers, staff and people receiving vital public services will all be hit hard. It’s unusual to see this range of voices in collective agreement and I hope the Chancellor will reconsider her position.”
