Local MP Fights for Local Charities Hit by Employer NICs Increase

7 Jan 2025
Tom Gordon in Harrogate and Knaresborough

Today, 7th January, Tom Gordon MP for Harrogate and Knaresborough has once again taken a stand for local charities, calling on the government to exempt them from the looming employer National Insurance Contributions (NICs) increase.

Speaking during a Parliamentary debate today, Tom highlighted the devastating financial strain this tax hike is set to impose on charities in Harrogate and Knaresborough. Drawing on recent meetings with two organisations in his constituency, Tom painted a stark picture of the challenges they, and many others, face as a result of this careless policy.

As Tom shared today, one charity, which provides vital support to unpaid carers, revealed it will face an additional £90,000 in annual costs, threatening essential services. Summing up the situation, Tom explained how ‘the rug has been pulled from beneath them.’ 

Another charity, one of the country’s largest police treatment centres, estimates the NICSs increase will cost them an extra £160,000 a year.

As Tom emphasised in both meetings and reiterated today, this Labour policy is completely self-defeating. If charities are forced to slash vital services, this will only pile pressure on already overstretched public services, ultimately costing the government far more than it hopes to gain in tax revenue. 

This is not the first time Tom has stood up for charities on this issue. In December, he joined Liberal Democrat colleagues in supporting an amendment to exempt health and care providers, including charities, from the NICs increase. 

Today’s debate reinforces Tom’s unwavering commitment to protecting the vital work charities do in Harrogate and Knaresborough and beyond. He remains determined to hold the government accountable for these reckless policies which will ultimately harm local communities instead of protecting them. 

Commenting on the issue, Tom said: 

‘Since Labour announced its plans to increase National Insurance Contributions for all employers, including charities, I have heard from many organisations deeply worried about the impact of this tax hike. Many charities are already stretched so thin, and this additional burden could force them to make drastic cuts to the care they provide. 

‘Ultimately, it’s the people who rely on these charities who will pay the price for this short-sighted and counterproductive policy. I cannot stand by and let that happen.

‘I am pleased to have brought attention to the devastating impact this increase will have on charities in my constituency and across the country. Charities are stepping up to fill the gaps where public services are failing and punishing them with higher taxes is not only wrong but entirely counterproductive.’ 

ENDS  

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