The closure of a vital charity’s North East branch is due to “mauling” National Insurance contribution (NIC) increases by the Labour government, a local MP has said.
Epilepsy Scotland ran a support group twice a month in Aberdeen, which was attended by around 20 people from the city and rural Aberdeenshire.
But the branch is now closed, with chief executive Lesslie Young describing a rise in employer NICs as “the straw breaking the camel’s back.”
More than 7,000 charities signed a letter urging chancellor Rachel Reeves to ease the burden of an estimated extra £1.4bn per year that the sector will have to pay for staff.
Scottish Conservative MP Andrew Bowie has urged Chancellor Rachel Reeves to u-turn on policies which are now “mauling charities” rather than large corporations.
In a letter to Ms Reeves, the West Aberdeenshire and Kincardine MP added:
“There has been a warning across the third sector that tax hikes will collapse some organisations, who save the public purse and NHS an awful lot of money.
“This will only be the thin end of the wedge, of course. Just one charity among so many others which will be considering shutting shop.
“This hike in employer NICs was no doubt cooked up to pile tax on to big employers which are supposedly able to take the strain.
“But in reality, it is now mauling charities, social care, councils, SMEs and even the NHS, all operating on razor-thin margins as it is.”
Announcing the charity’s closure in Aberdeen, Ms Young had said: “The Aberdeen support group has played a crucial role in supporting individuals living with epilepsy by providing a welcoming space for peer support.
“The group has expanded beyond the city, reaching rural communities in Aberdeenshire, with some attendees travelling up to two hours to participate.
“The Chancellor’s rise in Employers’ National Insurance Contributions is forcing charities like ours to shut down life-saving initiatives.
“I’ve absolutely no doubt in my mind she needs to rethink this.”
