Third Sector Dumfries and Galloway (TSDG) is continuing to make the case for a third sector exemption to planned increases in employer’s National Insurance contributions (eNICs), in the face of the UK Government repeating a rejection of such a move.
Alan Webb, TSDG’s Chief Executive Officer (CEO), joined organisations such as SCVO and NCVO later last year in highlighting to the Chancellor of the Exchequer the negative impact this will have on the sector. This is in addition to direct correspondence from TSDG to ask the UK Government to rethink their policy and setting out the importance of a third sector exemption at source.
Alan said: “Along with colleagues, I have highlighted the damaging impact of such additional costs to our sector, made worse by a backdrop of over a decade of pressures on sector funding and on local services. I’m clear that whilst mitigating measures may help local services, the best way to protect our essential third sector is to apply an exemption at the Treasury.”
The CEO has also highlighted the matter directly with the Scottish Government, local partners, and leaders of the main political groups on Dumfries and Galloway Council.
Estimates indicate the changes could cost the voluntary sector in Scotland as a whole around £75 million.
Echoing a previous response from the Chancellor, a letter from the Enterprise and Growth Unit at HM Treasury sent to TSDG stated the UK Government had taken a “number of difficult but necessary decisions on tax, welfare, and spending to fix the public finances, fund public services, and restore economic stability after the situation we inherited from the previous administration.”
The response also highlighted a doubling of the Employment Allowance to £10,500. The full response can be read here.
Alan said: “While there has been no movement since our initial case, we will continue to press the UK Government to change their minds and to ask the Scottish Government and local partners to consider the impact through their budgeting and funding decisions to mitigate the damage this policy will have on our sector across Dumfries and Galloway and nationally.”