Call for Clarity on National Insurance

48 Organisations Back Letter Raising Concerns

Scottish public sector and voluntary organisations have come together to raise concerns at the impact of the impending increase to employer National Insurance contributions.

Organisations from across civic society in Scotland have backed a letter to the UK Chancellor of the Exchequer, Rachel Reeves, calling for funding to fully cover the additional costs they face.

At present, the estimated cost to organisations delivering public services in Scotland to cover the increase in employer National Insurance contributions could amount to £700 million.

The joint letter from First Minister John Swinney and COSLA President Shona Morrison has been supported by 48 organisations including the Scottish Trades Union Congress, Scottish Council for Voluntary Organisations and British Dental Association.

Last week SCVO Chief Executive Anna Fowlie signed a letter to the Chancellor.

Increasing National Insurance contributions for organisations providing public services could amount to £700m in Scotland.

We hope Rachel Reeves reconsiders her position. https://t.co/h0LPa1292r pic.twitter.com/v3vFaIFQVm
— SCVO (@scvotweet) January 7, 2025

The number of signatories to this letter makes clear the extent of cross-sectoral concern that exists across Scotland about Labour’s National Insurance plans.

They come from all manner of charities and public service providers who are set to be hit by the tax hike.

To date, the Labour UK Government have refused to ensure the impact is mitigated in full.

It is essential that they revisit this matter, with the Scottish Government requiring clarity for all of these organisations ahead of the voting on its own Budget later this month.
GRAEME

Nearly 50 Scottish organisations join John Swinney to oppose Labour's "damaging" rise in employer National Insurance contributionshttps://t.co/7Slfna9Qjs
— The National (@ScotNational) January 3, 2025

I would like to thank all the public and voluntary sector organisations who have come together to call in a unified voice for this decision to be reconsidered.

We are disappointed that the UK Government did not engage with the Scottish Government on the change to employers National Insurance Contributions and we are concerned about the additional pressure it places on all employers. The Scottish Budget is expected to pass within weeks, and alongside local authorities, we need clarity.

We will continue to press the UK Government to raise our deep concern about the implications of the increase to employer National Insurance contributions for organisations across Scotland, and the risk to the vital services they provide if these additional costs are not fully funded.
FIRST MINISTER JOHN SWINNEY

Background

The letter has been supported by:

Roz Foyer, General Secretary, Scottish Trades Union Congress (STUC)
Anna Fowlie, Chief Executive, Scottish Council for Voluntary Organisations (SCVO)
Martin Green, Chair, Community Pharmacy Scotland
Eilidh Thomson, Chair, Optometry Scotland
David McColl, Chair of the Scottish Dental Practice Committee, British Dental Association
Jacki Smart, Chair, Scottish Hospices Leadership Group
Gavin Sinclair, Director of Funding and Partnerships, Venture Trust
Wilma Thomson, Manager, Rape Crisis Grampian
Sharon Aitchison, Chief Executive, Monklands Women’s Aid
Marsha Scott, Chief Executive, Scottish Women’s Aid
Lauren McGregor, Children and Young Person’s Team Leader and Independent Domestic Abuse Advocate, Committed to Ending Abuse (CEA Ltd)
Susie Stein, Chief Executive, Scottish Borders Rape Crisis Centre
Jan Swan, Chief Executive, Fife Rape and Sexual Assault Centre
Colin Lee, Chief Executive, Council of Ethnic Minority Voluntary Sector Organisations (CEMVO) Scotland
Aaliya Seyal, Chief Executive Officer, Legal Services Agency Ltd
Donna Hutchison, Chief Executive, Aberdeen Cyrenians
Angela Barron, Chief Executive, Forth Valley Rape Crisis Centre
Linda Rodgers, Chief Executive, Edinburgh Women’s Aid
Alana Harper, Chief Executive, Tayside Deaf Hub
Pam Hunter, Chief Executive, SAY Women
Karen Moore, Interim Change Manager, Motherwell District Women’s Aid
Shirley Middleditch, Manager, South Ayrshire Women’s Aid
Sandy Brindley, Chief Executive, Rape Crisis Scotland
Maria Jose Pavez Larrea, Co-General Manager, Grampian Regional Equality Council (GREC)
Paul Wilson, Chief Officer, Volunteer Edinburgh
Nicola Livingston, Chair, Scottish Council of Jewish Communities
Dr Richard Groden, Chair, Jewish Care Scotland
Dr Donny Lyons, Co-Chair, Cosgrove Care
Sabir Zazai OBE, Chief Executive, Scottish Refugee Council
Jane Wood, Chief Executive Officer, Homes for Scotland
Catherine Dyer CBE, Chair, Community Justice Scotland
Stuart Stevens, Chief Officer, Scottish Fire and Rescue Service
Graeme McAlister, Chief Executive, Scottish Childminding Association
Jaci Douglas, Chief Executive, Care and Learning Alliance
Ben McLeish, Director, 2020 Together
Louise Licznerski, Founding Director, Scottish Outdoor Learning Association
Irene Audain, Chief Executive, Scottish Out of School Care Network
Jonathan Broadbery, Director of Policy and Communications, National Day Nurseries Association
Sharon Fairley, Chief Executive, Scottish Private Nursery Association
Jane Brumpton, Chief Executive, Early Years Scotland
Fraser McKinlay, Chief Executive, The Promise Scotland
Francis Scott, Director of Services, St Phillips School
Stuart Provan, Chief Executive Officer, Seamab Care and Education
Mary Geaney, Chief Executive Officer, Rossie Young Peoples Trust
Martin Boyle, Interim Chief Executive, Scottish Funding Council
Pauline Radcliffe, Chief Executive, Scottish Credit and Qualifications Framework
Graeme Jackson, Interim Chief Executive, Colleges Scotland
Frank Mitchell, Chair, Skills Development Scotland
Damien Yeates, Chief Executive, Skills Development Scotland