Protect vital public service providers from tax rise

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The Issue

We call on the UK Government to review how the increase on National Insurance Contributions (NICs) impacts not-for-profit providers of public services, and take urgent action to protect all such organisations from the damaging impact of these unexpected costs. 

The employer NIC rise will put immense pressure on healthcare, social care, education, leisure and community services providers delivering public contracts, all of whom are already stretched by funding and staffing issues. We request that this review ensure a level playing field for health and social care providers in particular.

Without modification, the impact of NIC increases will mean that many public service providers are forced to abandon contracts, freeze recruitment and pay, make staff redundant or even close down. This in turn will impact all the communities reliant on their vital work.  

We urge the government to act swiftly, to provide reassurance and clarity to the thousands of organisations at risk and the people who rely on these crucial services.

 

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