Mencap's chief executive Jon Sparkes warned that the increase in National Insurance costs due to Rachel Reeves' tax hikes may force the charity to cease at least 60 services. The rise, which is a part of the government's budget to raise more than £25 billion, targets employers and does not offer exemptions to charities, further complicating their financial sustainability amid rising minimum wage obligations.
Labour claims that the tax hike is essential to repairing the UK's 'broken foundations'. However, charities like Mencap express grave concerns about potential job losses and service cuts, highlighting the delicate balance between government revenue needs and the operational viability of non-profit organizations that rely heavily on their funding.
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