Labour has said that "the money does have to come from somewhere" in response to cries from desperate charities facing a £1.4 billion jobs tax.

After Chancellor Rachel Reeves raised employers' National Insurance contributions, charities that assist the elderly and the very ill have warned they may have to make significant cuts.

The increase announced in the first Budget of the Labour Government did not apply to the NHS, but charities that offer health services will still have to pay.

They urged the Chancellor to reconsider, but Stephanie Peacock of Labour, who oversees charities as part of her responsibilities as minister for civil society, has now ruled out any modifications.

She said: "The bottom line is that we have been very clear that we want economic stability, and the money does have to come from somewhere - it is tax, borrowing or cuts."

Ms Peacock admitted: "I am aware, however, of the concerns of the voluntary, community and social enterprise sector about the impact that the changes will have on their organisations."

Tory shadow minister Saqib Bhatti slammed the decision, saying: "The impact is already being felt, and it is dire."

The National Council for Voluntary Organisations estimates that the tax will cost charities £1.4 billion annually, cautioning that many may have to downsize staff, lower wages, and, most critically, reduce services for those they aim to help.

Marie Curie, a provider of end-of-life care, stated it would face a yearly expense of £2.92 million, leaving "reducing services" as the only viable option.

Homelessness charities like Crisis, St Mungo's, and Homeless Link warned of potential losses up to £60 million, expressing in a letter to the Chancellor that this would have "an immediate detrimental impact on the lives of thousands."

The Carers Trust, which supports unpaid carers including children looking after sick family members, anticipates a £3 million reduction in its service funds.

Age UK says the National Insurance increase will be "the straw that breaks the camel's back" for some local charities as well as small businesses providing social care.

And charities that help victims of crimes including violent and sexual offences said they will lose "many millions of pounds" and will have "no choice" but to lay off staff and cut services.

This warning came in a joint statement from the chief executives of Victim Support, Rape Crisis, Welsh Women's Aid, Women's Aid Federation England and Imkaan.

Mr Bhatti accused Labour of breaking a pre-election promise not to increase National Insurance.

He said: "When the Chancellor delivered her Budget of broken promises, she did exactly what she promised during the election that she would not do: she significantly raised employer National Insurance. What is even more concerning is the devastating effect that this has had on the charity sector."

Conservative MP Joe Robertson said: "The Government know the pressure created by the National Insurance contribution rise.

"They exempted the NHS because they knew the impact it would have on healthcare, but they ignored or failed to understand the contribution that charities make to health and social care."