Changes to employers' National Insurance contributions will cost Hertfordshire County Council £20m a year, it has emerged.

From April, the amount of National Insurance paid by employers will increase by 1.2 per cent, to 15 per cent.

And, in a further change, employers will start paying the tax from a salary level of £5000 – rather than the current £9,100.

Concerns have been raised about the impact the increase will have on businesses, charities and the public sector in the county.

And at a meeting of the county council on Tuesday (December 10), councillors heard that the cost to the county council would be £20m.

Executive member for resources and performance Cllr Bob Deering revealed the sum in response to a question about council budgets from Labour Cllr Ian Albert.

"One of our problems is National Insurance, of course – and your government's increase in National Insurance will cost this council £20m – which otherwise we could spend on children and adults," he said.

"And it is not well received.

"This council famously looks after its finances as well as can possibly be expected.

"It is very challenging.

"We spend over £570m a year on adults. We spend £240- £260m a year on children. And finding every penny of that is a challenge.

"Of course if this new government would like to put its money where it mouth is and provide us with more money we will gratefully receive it."

Earlier in the meeting Green Party Cllr Ben Crystall had also raised the issue of the "massive increase" to employers' National Insurance contributions.

He told council leader Cllr Richard Roberts he was concerned about the impact on small charities with part-time staff, which he said provided essential support to vulnerable members of the community.

He had asked if the leader would write to the government expressing concern about the impact that this would have.

And – suggesting that many charities were providing services that the county council would otherwise need to provide – he asked what steps the council was considering in its own budget to mitigate the impact of the changes on local charities.

In response Cllr Richard Roberts acknowledged that the changes to National Insurance – both the drop in the threshold and the 1.2 per cent rate increase – were hitting all organisations hard.

He highlighted earlier remarks made at the meeting that had pointed to the impact it was having on hospices – with suggestions hospices were no longer offering beds because they couldn't afford to pay the nurses.

And he said charities would be wondering how they would employ their employees.

He said there was a continuing dialogue with government. But with regard to funding from the county council he said the local government settlement would not be available until the end of the month.

Earlier in the same meeting the Conservative-majority county council backed a motion calling on the government to rethink the increase in employers National Insurance and the inheritance tax changes with regard to family farms and businesses.