Oral question asked in the House of Lords, by Baroness Grender (Liberal Democrat). It was answered on Monday, 13 January 2025.

National Insurance: Charity Sector

Question: My Lords, can the Minister explain why this Government have decided to tax charities through national insurance contributions and yet to persist at the same time with the Conservative Government’s unfair tax relief to banks, using Rishi Sunak and Jeremy Hunt’s cuts in bank surcharges—an estimated £4 billion a year in effect given away due to cuts in the bank levy since 2016? Why not return those taxes to 2016 levels, stop this tax rise on charities and tax the banks instead?

Answer: Without wanting to repeat what my noble friend Lord Livermore would have said had he been here, we inherited a £22 billion black hole. I appreciate the sector’s concern, but, regrettably, as part of the Autumn Budget, the Government had to take a number of difficult decisions on tax and welfare spending. I know the Chancellor highlighted this decision as one of the hardest she had to make in respect of the Autumn Budget.

Secondary information

Type: Oral question
Reference: 842 c912
Session: 2024-26
Oral question type: Supplementary
Chamber / Committee: House of Lords chamber
Subjects: Charities Employers' contributions Hospices Citizens' advice bureaux
Link: View this Oral question on hansard.parliament.uk