Social care providers could be forced to close if they are not exempt from an increase in national insurance, a local authority has warned.

Kent County Council (KCC) says some charities are already suffering “severe” under-funding which has been made worse by the rise in the national minimum wage.

KCC has urged the Chancellor Rachel Reeves to “immediately review” her recent Autumn budget announcements to ease the pressure on services and the council’s finances.

KCC cabinet member for adult social care and public health, Cllr Dan Watkins, backed concerns already raised by the Kent Integrated Care Alliance (KiCA), which represents care providers.

Cllr Watkins, said: “It is already strained to breaking point by the lift in the National Living Wage and chronic funding gap in the face of rising demand.

“It means the uptick in NICS [national insurance contributions] makes for a devastating triple whammy that will hugely affect what support is available for those most in need in our communities.

“The Office for Budget Responsibility's own analysis shows the extra £600 million allocated to social care in the Budget will be cancelled out by the new tax rises.

“KCC has also forecast a savings requirement of just under £50m in its own budget for next financial year.

“Savings of £42m have already been identified but by law we must balance our books and ensure we continue to provide statutory services.

“I therefore urge the Chancellor to immediately review the culminative effect of the recent Budget on social care and ease the pressure on providers and council finances.”

Ann Taylor, chief executive of KiCA, said: “The Kent Integrated Care Alliance is deeply concerned the government has not recognised the vital role that the independent and voluntary care providers play in the support of most vulnerable citizens in our society.

“This rise in employer National Insurance Contributions, along with the lowering of the threshold to £5,000, will have a profound effect on smaller providers who employ part-time staff.

“Along with the rise in the National Living Wage we are certain to see many of these providers at best reducing their staffing levels, cutting back on re-investment and staff development, and at worse leaving the market due to financial instability.”