Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment she has made of the potential impact of National Insurance changes on the closure rate of charities.

A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer NICs. The TIIN set out the impact of the policy on the exchequer, the economic impacts of the policy, and the impacts on individuals, businesses, and civil society organisations, as well as an overview of the equality impacts.

More widely, the UK tax regime for charities, including the exemption from paying business rates, is among the most generous of anywhere in the world. Tax reliefs for charities and their donors were worth over £6 billion for the tax year to April 2025, of which gift aid made up just over £2.5 billion and business rates relief over £2.7 billion.