Louie French MP's latest column in the News Shopper.
Bexley's local charities are bearing the brunt of the Labour government's £25 billion national insurance tax hike.
Starting this month, every employer - whether a small or large firm, for-profit or charity - will have to pay £800 on average more in tax for every person they employ.
Businesses have been bracing for impact. Some tell me they'll make redundancies. More will limit staff pay raises and cut other costs. Others will increase prices. A few have delayed growth plans. Most say it'll be a mixture of all of these levers. But it's even harder for charities. Costs are increasing, and more and more vulnerable people are seeking help.
Some charities locally receive most of their money from contracts with public bodies, like Bexley Council or the NHS. However, renegotiating these contracts is challenging, and the government hasn't given local authorities or health bodies the funds to pay out more.
For example, Bexley Council received a one-off £1.6 million to cover the national insurance increase of the staff it directly employs, but not its contractors. The total cost of Labour's Jobs Tax to Bexley Council could be up to £5 million, not a figure any local authority can easily find.
Other charities rely on donations. Shockingly, 45p will go on tax for every pound donated thanks to Labour's hike. But with less than a year's notice, it's near-impossible for a charity to raise a few hundred thousand pounds more to pay Labour's tax bill. And yes, for some charities, the cost is as high as that. It's simply eye-watering.
Charities are left with a dilemma. Fundraise and renegotiate contracts not to provide more or better services but to pay tax. Make cuts and redundancies when more and more people need charitable thanks to Labour's heartless decision to axe winter fuel payments for millions.
That's why I voted to exempt charities from Labour's tax raid. But shamefully, Labour MPs voted down our proposal despite the impact it will have on every charity, from those providing mental health support to children's hospices. It's cruel and short-sighted.
As the Member of Parliament for Old Bexley and Sidcup, I regularly meet, listen and support local charities that do much for our community. In my role as the Conservative Shadow Minister for Sports, Gambling and Civil Society, much of my time at Westminster is devoted to working with national charities to hold the Labour government to account.
So, I know the damage Labour's Job Tax is doing nationwide, but more importantly, here in Bexley. Recently, I attended a meeting organised by the Bexley Voluntary Sector Forum with many of the charities operating locally. Charity after charity warned winter fuel payment and welfare cuts mean more vulnerable people are asking for support right when Labour's tax rises start to bite charities.
The Labour government needs to start listening to them. I'll do everything I can in Parliament to oppose Labour's tax rises and urge ministers to think again. But, in the meantime, Bexley needs to back its local charities, whether by donating or community fundraising — and we can all play our part in that effort.
