FM warned that charities face a £75million bill. 

First Minister John Swinney has said the UK Budget cannot be “balanced on the back of Scotland’s charities”.

Speaking at the Social Enterprise Scotland conference in Edinburgh, the SNP leader said the UK Government should reimburse charities for the increases to employers’ national insurance (NI).

Labour Chancellor Rachel Reeves announced the measure in last week’s Westminster budget, with the rate of NI rising from 13.8% to 15%, and the salary threshold going down from £9,100 to £5,000.

The National reports that Mr Swinney added that the tax hike should not apply to the third sector.

He said: “The UK Government’s decision to increase employer national insurance contributions is having a set of unintended consequences which is causing real alarm across the country.

“The costs to the public sector in Scotland could amount to £500 million – but other vital sectors are facing a huge financial hit which could have devastating consequences for front line services.”

Mr Swinney is reported to have estimated that charities will face a £75million bill as a result. 

According to The National, he added: “It is completely unacceptable for our third sector to be punished as a result of decisions made by the Chancellor. The UK Budget must not be balanced on the backs of Scotland’s charities.

“The Chancellor clearly did not foresee the extent of the problems her decisions would cause when she published her Budget – the panic and confusion that has emanated from the Treasury since makes that clear.

“But there is still time for the UK Government to do the right thing and meet these costs in full.

“The Chancellor can address the potentially devastating impacts for frontline services – and the UK Government must now fix the situation they have created.”