Epilepsy Scotland chief executive Lesslie Young called on the NI to be scrapped

A Scots charity chief has urged Labour chancellor Rachel Reeves to reverse a tax hike blamed for cuts and looming job losses.

Epilepsy Scotland chief executive Lesslie Young said the rise in national insurance contributions was a factor behind their charity axing a vital support group.

She said: “It’s the straw breaking the camel’s back.”

From 6 April, the rate of employer NICs rose from 13.8 per cent to 15 per cent as part of a Treasury bid to raise £25bn.

But the Labour Government has been warned the rise will hit jobs and damage services provided by charities

Young told the Record of the many challenges facing her sector over the years, from the financial crash and austerity to Brexit and covid.

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She said: “The need for money for life-saving charities and their projects outweighs its availability by an order of magnitude.

“In our case, the Aberdeen support group has played a crucial role in supporting individuals living with epilepsy by providing a welcoming space for peer support.

“Facilitated by a trained Epilepsy Scotland professional, the group ensured a safe environment where members can discuss their experiences and concerns.

“With 20 members, the group meets twice a month to host social events. The group has expanded beyond the city, reaching rural communities in Aberdeenshire, with some attendees travelling up to two hours to participate.”

But Epilepsy Scotland has now closed the Aberdeen support group and Young said Reeves’ decision is partly to blame:

“Amid a long-term funding crisis in the third sector, the Chancellor’s rise in Employers’ National Insurance Contributions is forcing charities like ours to shut down life-saving initiatives.”

She said: “I’ve absolutely no doubt in my mind she needs to rethink this.”

Reeves recently lost the financial headroom she built up during her budget and Young says the same is true for charities because of decisions like the national insurance rise.

“We literally have not one centimetre of head room left.”

Her warning comes after key groups also sounded the alarm about the NI increase.

Kate Nicholls, chief executive of UKHospitality, said: “The increases to employer national insurance contributions are going to hit businesses and workers right across the UK.

“The impacts will be stark, with hours for staff reduced, trading hours shortened, prices increased and, in the worst case scenario, jobs lost.”

Helen Dickinson, chief executive of the British Retail Consortium, said: “A recent survey of retail finance directors showed that half were planning to reduce hours and workers as a direct result of the employer NIC hike.

“While the Government’s welfare reforms aim to increase the numbers in work, this week’s cost increases will kick away the ladder for many who are just getting their first foothold.”

SNP Finance Secretary Shona Robison said: The UK Government’s national insurance hike is bad for our public services and bad for business.

“Given that UK Government ministers claim their number one priority is driving economic growth, it is inexplicable that they would take a decision that will impact employers in this way.”

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