News Detail

Nov 29, 2024

Culture secretary defends treatment of charities amid 'real danger' posed by NI hike

The culture secretary has defended the government’s treatment of charities after Conservative MPs grilled her over the “real danger” posed by the rise in employer National Insurance contributions.

Responding to questions in the House of Commons today, Lisa Nandy said the previous government “silenced and gagged” charities and said the Labour administration was “protecting our charities”. 

Nandy was asked about the planned rise in employer NI contributions from 13.8 per cent to 15 per cent, which the National Council for Voluntary Organisations estimates will cost the voluntary sector an additional £1.4bn per year.

The debate came after the Rachel Reeves, the Chancellor of the Exchequer, confirmed that no exemptions or reimbursements would be made for charities, responding to a letter from the NCVO and the charity leaders body Acevo. 

In parliament today, Stuart Andrew, the shadow culture secretary, said: “[Charities] face a £1.4bn bill. We heard yesterday that the Teenage Cancer Trust will have to find an extra £300,000, and Marie Curie reports having to find nearly £3m.”

The former charities minister asked Nandy: “Where does the secretary of state suggest that such organisations find the money to pay this charity tax, and who will fill the gaps if charities have to scale back on their work as a result of this government’s decisions?”

Nandy responded that under the Conservative government, charities “faced a perfect storm” and received “very little support from the government”.

She said: “In fact, they were silenced and gagged, and were told by one charities minister that they should be ‘sticking to their knitting’, which, in my view, was deeply offensive.”

Nandy added that charities had to deal with rising pressures from the cost-of-living crisis and the “mess” that the Conservatives had made of running the country.

She defended Labour’s actions, saying: “Our government are determined to take action on this, and we were elected on a pledge to do so. 

“We are protecting our charities, as was announced in the Budget, and I will take no lectures from the Conservatives on how to run this country.”

Paul Holmes, the shadow minister for housing, communities and local government, said: “The charitable sector is in real danger because of this government’s decisions.”

Referring to challenges relating to the employer NI hike faced by Mountbatten Hospice, a charity in his constituency of Hamble Valley, he asked Nandy: “Can the secretary of state outline what pressure she will put on the Treasury to make sure that the policy changes?”

Nandy replied that she had discussed the problems facing hospices with Wes Streeting, the health secretary, and said: “He is acutely aware of it, and is working with the hospice movement in order to provide the best possible support.”

When asked how the youth sector will be supported in relation to the NI hike, Nandy said the civil society minister Stephanie Peacock had held a number of roundtables with the sector to ensure the government was providing the right help and support.

She said: “This government is taking action to protect the sector, and when we launched the civil society covenant a few weeks ago, we made it clear that we want a genuine partnership with charities. They are welcome at the heart of Downing Street.”