The Scottish Council for Voluntary Organisations is the membership organisation for Scotland's charities, voluntary organisations and social enterprises. Charity registered in Scotland SC003558. Registered office Mansfield Traquair Centre, 15 Mansfield Place, Edinburgh EH3 6BB.
Letter to Scottish MPs - UK Budget: Impact of NI changes on charities in your constituency
SCVO wrote to Scottish MPs on the 5th of November following the UK Autumn Budget on the 30th of October 2024.
As part of the Budget process, we write to draw your attention to the impact of proposed National Insurance changes on charities and other voluntary organisations. You may have seen coverage of this issue in the media, both before and after Wednesday’s announcement.
The voluntary sector is a significant employer, employing over one million people across the UK; in the Scottish context, more than 133,000 people work in the voluntary sector – around 5% of the workforce.
As a conservative initial estimate, we believe that changes in NI will result in voluntary organisations in Scotland needing to find an additional £75 million per year.
The additional financial pressures imposed by the changes in NI come at a time when many voluntary organisations are already facing a financial cliff edge. With grants and contracts having been flatlined for several years, and fundraising and trading income decreasing due to the cost of living crisis, many voluntary organisations have been using reserves to stay afloat – a situation which is unsustainable. I’m sure you will be aware of several such examples in your constituency.
Further financial pressures may be the straw that breaks the camel’s back, resulting in service closures and redundancies, at a time when our communities are more reliant on the support of charities than ever.
While public sector employers will be recompensed for the proposed changes to employers' NI contributions, in recognition of the difficult financial situation they find themselves in and the crucial public services they provide, no such concession has been made in relation to voluntary organisations, despite their precarious funding position and vital role supporting our communities.
Together with sister organisations across the UK, we are calling on the government to extend the support being provided to public sector employers to employers in the voluntary sector. We would be very grateful for your support in bringing this issue further to the fore in Parliament.
If we can provide further information on this critical issue, please don’t hesitate to contact sheghley.ogilvie@scvo.scot.
Kind regards,
Sheghley.
Sheghley Ogilvie
Policy & Public Affairs Officer
Scottish Council for Voluntary Organisations (SCVO)
Additional information
Letter to Rachel Reeves, Chancellor of the Exchequer: Autumn Budget 2024 – employers’ National Insurance contributions
SCVO, NCVO, NICVA, and WcVA letter to Rachel Reeves, Chancellor of the Exchequer: Autumn Budget 2024 – employers’ National Insurance contributions
Letter to Scottish MPs: UK Budget: Support the voluntary sector in your constituency
SCVO letter to Rachel Reeves, Chancellor of the Exchequer
