A Suffolk group supporting charities has warned local MPs that some organizations could close and around 90 people could lose their jobs after the autumn budget.

Based in Ipswich, Community Action Suffolk (CAS) provides advice and support to voluntary, community, faith and social enterprise organizations across the county.

He said he had written to all Suffolk MPs on behalf of 29 groups and told them the Budget “may have gone a step too far”, saying the impact of changes to employers’ National Insurance contribution (NIC) could cost the local charity sector £1 extra. 2.33m.

HM Treasury said in a statement that the tax regime for charities is “one of the most generous tax regimes anywhere in the world”.

Some charities fear NIC changes will increase staff costs too much and put pressure on the need for extra fundraising to make up for shortfalls.

Exemptions currently apply to the NHS and other public sector organisations.

A separate open letter Organized by the National Council for Voluntary Organisations.It was sent to the Treasury last week.

CAS chief executive Hannah Reid said she feared the financial strain would be too much for some charities that provide “vital services that keep Suffolk residents safe and well”.

He added that some of these organizations were helping to reduce pressure on other public services, including the NHS.

He said 54 organizations responded to a CAS survey estimating the changes could cost 88 jobs and therefore “massively reduce the services they are able to provide”.

CAS said groups could have to incur additional costs of £2.33 million for 2025-26 after the budget was delivered on October 30.

‘Demand is increasing’

“We already run some of the leanest organizations in the county, having made every possible savings in recent years to cope with the increasingly difficult financial environment,” Ms Reid said.

“Recently, we have been constantly expressing the challenges our industry currently faces due to increasing demand and the complexity of this demand.

“Funding cuts and reduced public donations, rising costs and a shortage of volunteers have led to charity closures in Suffolk over the last 12 months.”

The government uses NICs to pay benefits and help fund the NHS.

A HM Treasury spokesman said the charity tax regime, including business rate exemptions and tax reliefs for organizations and their donors, was “worth just over £6bn for the tax year to April 2024”.

“We have protected small charities and businesses by more than doubling Employment Allowance to £10,500, meaning more than half with NIC liabilities will see either gain or no change next year,” they said.

“Charities will be able to claim employer NIC benefits, including where eligible, and will still be exempt from business charges.”

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