The autumn budget announced on Wednesday (30 October), is set to raise £40 billion through tax increases that will work towards rebuilding public services.

£600 million in new funding for social care will help support the communities we serve, along with the rise on the weekly earnings limit on Carer’s Allowance. However, there was no mention of the voluntary sector in the budget and the implications from it will be challenging.

The increase in employer National Insurance Contributions (NIC) to 15%, along with the NIC threshold being dropped from £9100 to £5000, will put additional financial pressures on already limited financial resources. This is in addition to a 6.7% increase in the national living wage, which whilst positive, will have a real impact on the sector when these costs cannot be passed on.

Higher payroll costs may hinder some charities’ long-term sustainability and this could result in a more limited capacity to respond to the needs of our communities at a time of increasing demand. The National Council for Voluntary Organisations, along with sister councils across the UK, have written this letter to the Chancellor urging her to reimburse charities for these costs.

In terms of rising operational costs from next April, some may benefit from the increase in Employer’s Allowance from £5000 to £10,500 which will help charities reduce their National Insurance Contributions.