SCVO has responded to comments from the Deputy First Minister, Kate Forbes, that the public sector in Scotland will have to “absorb” a £200 million shortfall because of the UK government’s decision to increase employers’ National Insurance contributions.
Commenting, Anna Fowlie, SCVO’s Chief Executive, 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, food banks, 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.”