Question to the HM Treasury:

To ask His Majesty's Government, with reference to paragraph 2.40 of the Autumn Budget 2024, published on 30 October, what discussions they held with charities on the potential impact of increased National Insurance contributions on their sector.

The Government recognises the important role charities play in our society, and has been working closely with the sector to develop a framework for a new Covenant between government and civil society.

To repair the public finances and help raise the revenue required to increase funding for public services, the government has taken the difficult decision to increase employer National Insurance.

The Government recognises the need to protect the smallest businesses and charities, which is why we have more than doubled the Employment Allowance to £10,500, meaning more than half of employers with NICs liabilities either gain or see no change next year. Charities will still be able to claim employer NICs reliefs including those for under 21s and under 25 apprentices, where eligible.

In terms of an impact assessment, HMRC recently published on 13 November a Tax Information and Impact Note that covers the employer NICs changes.

More broadly, on engagement with the sector, the Government takes into account all representations made ahead of the Budget, and meets with stakeholders on a regular basis.

Within the tax system, we provide support to charities through a range of reliefs and exemptions, including reliefs for charitable giving, with more than £6 billion in charitable reliefs provided to charities, CASCs and their donors in 2023 to 2024.