Victoria Collins MP fights for Hertfordshire charities against government’s ‘jobs tax’

Victoria Collins, Liberal Democrat MP for Harpenden and Berkhamsted, called for charities to be spared from the government’s planned hike to employers’ National Insurance Contributions (NICs), highlighting the impact on local organisations. 

The Liberal Democrats recently tabled an amendment to exclude charities - as well as other critical health, care and education providers - from the tax rise.

Victoria has called again on the government to take action - either by exempting charities from the tax, or recompensing them for the change with increased grants - or else they risk causing major damage to local charities in the area. 

Her speech in a Westminster Hall debate on the potential impact of changes to employers’ NICs on the charity sector continued the Liberal Democrats’ hard-fought campaign against this tax increase, which was announced in the 2024 Autumn Budget.

Just before the Christmas recess, Victoria and her Liberal Democrat colleagues secured a vote on a Liberal Democrat amendment to the government’s National Insurance Contributions Bill. This would have exempted all health and care providers from this tax hike, but was unfortunately voted down. However, the Liberal Democrats are continuing to oppose the NICs change in the strongest possible terms.

Victoria has previously raised how damaging this tax increase will be for local organisations including the Elms Medical Practice in the Harpenden and Berkhamsted constituency.

And yesterday she further emphasised how devastating this NICs hike will be for local Hertfordshire charities already struggling from soaring costs due to the rising input costs and the cost-of-living crisis.

These include Age UK Hertfordshire and the Hospice of St Francis, of which Victoria is also a Patron.

Speaking in yesterday’s debate Victoria said:

“The Government’s proposed changes pose a severe threat to vital charities at the heart of our communities. Again and again, we have heard that. Age UK in Hertfordshire has calculated that the rises will impose an additional cost of £85,000 per annum and, when combined with unexpected increases in operational costs, they have pushed its total cost increases close to £250,000.

“Higher national insurance contributions mean increased costs, reduced capacity to hire and retain staff, and ultimately fewer resources to deliver the services our communities rely on. The wonderful team at the Hospice of Saint Francis in Berkhamsted shared with me the heartbreaking experience of having to turn away people from their health and wellbeing service, their nursing support and their at-home support.

“The situation will only get worse. Time and again, charities have spoken to me about how the Government’s snap decision undervalues their essential work, such as supporting covid-19 vaccine roll-out, picking up the pieces after the winter fuel allowance was cut and filling the gaps left by the last Conservative Government. With our NHS and public service in crisis, I urge the Government to reconsider these national insurance rises for charities.”