South Wales Central Regional Member, Joel James MS, has today questioned the First Minister on the new Labour Government’s budget, specifically regarding the increase in national insurance contributions that will need to be paid by employers.
The Member expressed his concern that this increase is expected to have a devastating impact on charities with an estimated additional annual bill of around a staggering £1.4 billion.
During his contribution, Joel also highlighted that however a charity decides to deal with this decision, whether a charity decides to reduce the number of employees so it delivers less of a service or whether it cuts spending on projects and initiatives, "it ultimately means that the sector will be considerably weakened and there will be considerably less support for some of the most vulnerable in our communities".
Questioning the First Minister, the Member asked whether she agrees that the UK Labour Government should reimburse voluntary organisations for the increased employer national insurance contributions given that it will inevitably translate into the need for more spending on public services to fill in the gaps that will inevitably be created.
Speaking outside the Chamber, Joel said:
In last week's autumn budget, the UK Labour Government increased NI contributions for employers - it is estimated that it will cost the charity sector £1.4Billion.
This is devastating news and will mean the loss of service for some of our most vulnerable communities.
Today I challenged the Welsh Government on this.
To watch Joel's full contribution, please click here.
