Sector speaks out as it is revealed the rise will leave a £200m hole in public finances
The UK Government must think again about the disastrous impact a planned National insurance (NI) hike will have on the voluntary sector.
Scottish Council for Voluntary Organisations (SCVO) chief executive Anna Fowlie re-stated the position of the country’s charities that the increase – due to start in April – will have a terrible impact on organisations already reeling from the blows of rising demand and shrinking funds.
As well as criticising the UK Government, she also said it was “very disappointing” that no plans have been made by the Scottish Government to help the sector deal with the NI hike in the soon to be passed Scottish budget.
Fowlie was responding to comments from the Deputy First Minister Kate Forbes (pictured), where she said that the public sector in Scotland will have to “absorb” a £200 million shortfall because of the UK government’s decision to increase employers’ NI contributions.
Anna Fowlie said: “The voluntary sector is a significant employer, both in Scotland and across the UK.
“Voluntary organisations deliver vital public services on behalf of public bodies through grants and contracts – from social care providers looking after our loved ones, initiatives tackling social isolation, foodbanks, disability support services and much more. Voluntary organisations and our staff must be treated fairly.
“As the scale of the impact of increased National Insurance contributions for medium and larger voluntary organisations begins to be understood, it is bitterly disappointing the chancellor has not changed course.
“We are deeply concerned at the reported hole in Scotland’s public finances and are disappointed no provision has yet been made to meet increased costs to voluntary sector employers within the Scottish budget.
“Voluntary sector funding must cover the full costs of employing staff. Employers cannot absorb these new costs. Some organisations face costs of hundreds of thousands of pounds. Adequate resource, and clear commitment, from our political leaders is urgently needed – the essential services and support our communities rely on depend on it.
“The UK and Scottish governments must work together as a matter of urgency to resolve this issue.”
