Charity leaders have written an open letter to the Chancellor of the Exchequer Rachel Reeves to ensure the forthcoming Autumn Budget does “not place further burdens on the voluntary sector”.

They warn Reeves that the sector “already faces a perfect storm of falling funding, rising costs, and climbing demand” as well as “the negative impact” of National Insurance (NI) employer contribution rises brought in following last year’s Budget.

“Despite clear appeals from the sector” the NI hike has “driven up employment costs and made it harder for organisations to attract and retain the skilled staff they need to deliver vital services for people and communities”.

Their letter also reminds Reeves of commitments made by the government through its Civil Society Covenant to ensure any future proposals that impact the sector be developed “in genuine partnership with civil society”.

The letter has been signed by 19 charity sector leaders, including NCVO chief executive Kate Lee, ACECO chief executive Jane Ide and Katie Docherty, the CEO of the Chartered Institute of Fundraising.

The chief executives of the Northern Ireland Council for Voluntary Action, Wales Council for Voluntary Action and the Scottish Council for Voluntary Organisations have also signed the letter.

Reeves will deliver her Autumn Budget to parliament on 26 November.

Last month charity sector coalition the Civil Society Group called on the government o consider “opportunities for high-impact reforms that would empower civil society”, in its submission to ministers ahead of the Autumn Budget.

This includes encouraging greater collaboration between charities, local councils and other public services as well as considering “modernising tax and fiscal incentives to promote giving and donations”, promoting philanthropy and support charities to adopt artificial intelligence technology.

"The sector is juggling multiple challenges; from a difficult funding environment, to being stretched by contracts that fall financially short, all whilst getting to grips with a sea-change in the way we all work and deliver impact,” said Charity Finance Group head of policy Richard Sagar when this was submitted to government.

Earlier this month the government launched its Office for the Impact Economy to improve philanthropy and social investment.

The new unit will be housed in the Cabinet Office with Chief Secretary to the Prime Minister Darren Jones as its ministerial lead.

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