Charity leaders have warned that measures announced in Labour’s Autumn budget could lead to cuts to staff, services and salaries.

In her first budget Chancellor of the Exchequer Rachel Reeves announced an increase to employers’ national insurance contributions, a reduction in the threshold when they need to pay, as well as an increase in the national living wage.

Acevo chief executive Jane Ide has called this a “triple whammy” threat for charities and hopes the government meets with civil society leaders “to discuss the ramifications of these announcements”.

“Civil society leaders have very limited choices to make in how to manage these significant increases in operating costs,” she said.

“The harsh reality is that many organisations may be forced to reduce staff, cut salaries, and, most importantly, scale back services for the very people they strive to support.”

Other charity leaders concerned over the announcements for employers include St Christopher Hospice’s interim chief executive Jan Noble.

“Hospices across the country are now facing a higher tax burden due to the increase in Employers’ National Insurance,” she said.

“We are once again calling for emergency funding for hospices as well as a new sustainable funding model for hospice care across the UK.

“There are large discrepancies in hospice funding across the country which only increases the inequalities that exist in end of life and palliative care.

“We need standard funding agreed per person across the country so that no matter where they are, everyone receives the same support.”

She is also disappointed that “end of life care was ignored” in the budget.

“We cannot rely on bake sales, marathons and charity shops to support hospices through the current crisis,”

“Those at the end of life, their families and loved ones will suffer the most.”

Elsewhere, Nugent chief executive Jo Henney is calling for more clarity from the government as to how charities can navigate the rise in national insurance contributions.

“In the immediate future, this rise in employer national insurance will mean less money is available for core missions and initiatives within charities and could affect the essential services that we provide - making ‘need to haves’ into ‘nice to haves.”

Another to raise concerns about this tax hike for employers, including charities is Amy Brettell, managing direct of charity and public sector insurer Zurich Municipal.

“A national insurance increase will be tough for many organisations but for the charity sector the ramifications for this could be huge especially given the increase in the National Living Wage to £12.21 per hour as well,” she said.

“Absorbing the additional cost at such short notice could see critical services cut if additional funding cannot be raised.

“At a time when financial pressure on the voluntary sector is already so acute, making them exempt from this is essential for the survival of many to allow them to continue to fulfil such a vital role in society.”

Locality’s Chief Executive, Tony Armstrong added: “Many will find it difficult to cope with additional staffing costs without new income sources”.

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