Earlier this week (on 7 January), Liberal Democrat Daisy Cooper, MP for St Albans, once again called for charities to be spared from the government’s planned hike to employers’ National Insurance Contributions (NICs), highlighting the impact on local organisations.
The Liberal Democrats recently tabled an amendment to exclude charities – as well as other critical health, care and education providers – from the tax rise.
Daisy has called again on the government to take action – either by exempting charities from the tax, or recompensing them for the change with increased grants – or else they risk causing major damage to local charities in the area.
Her speech in a Westminster Hall debate on the potential impact of changes to employers’ NICs on the charity sector continued the Liberal Democrats’ hard-fought campaign against this tax increase, which was announced in the 2024 Autumn Budget.
Just before the Christmas recess Daisy (who is also the party’s Treasury spokesperson) and her Liberal Democrat colleagues secured a vote on a Liberal Democrat amendment to the government’s National Insurance Contributions Bill. This would have exempted all health and care providers from this tax hike, but was unfortunately voted down. However, the Liberal Democrats are continuing to oppose the NICs change in the strongest possible terms.
Daisy has previously raised how damaging this tax increase will be for local organisations, businesses and charities, including Citizens’ Advice St Albans, Hightown Housing Association, and Rennie Grove Peace Hospice in the St Albans constituency.
And yesterday she further emphasised how devastating this NICs hike will be for local Hertfordshire charities already struggling from soaring costs due to the rising energy prices, interest rates and input costs.
These include Mind Mid Herts, and Emmaus in St Albans.
Speaking in yesterday’s debate, Daisy said:
“In St Albans, a doctor working in palliative care has told me the decision not to exempt hospices from the National Insurance Contributions increase is “nothing short of devastating.” A local mental health charity has told me that these cuts “will result in an increase in demand for NHS-run services.”
“This National Insurance Contributions increase is unnecessary, given we Liberal Democrats have put forward alternative and fairer ways of raising tax revenue. They’re self-defeating given that the withdrawal of some charitable services will pile pressure on the NHS. And it’s unfair, given that charities support the most vulnerable people. Charities are the glue that hold our communities together; it’s terrible that as a result of these tax changes, many communities will now see charity services slashed.”
Daisy’s recent visit to Rennie Grove Peace Hospice in St Albans.