Finance Minister, Dr has written to the Chief
Secretary to the Treasury pressing for adequate funding to be
provided to offset the impact of increased National Insurance
contributions.
Minister Archibald said: “The increased National
Insurance contributions will prove incredibly challenging for our
local businesses as well as the community and voluntary sector
and public sector employers.
“Devolved Governments quite simply do not have the
financial capacity to compensate for decisions made on reserved
taxation matters.
“The Chancellor has said support will be provided for
public sector employers, however it is unlikely to be sufficient
to meet the increased costs. I have written to the Chief
Secretary to the Treasury asking for our costs to be met in full
and for support for those outside central government who provide
vital public services, given the pressures they will face as a
result of this policy decision.”
Outlining the impact on the community and voluntary sector,
Minister Archibald added:
“The Chancellor's
budget is a double blow to the community and voluntary sector
which will face increased costs at a time when the British
Government are reducing the Shared Prosperity Fund by a third
which will have funding implications for this sector.
“I raised this when I met with the Minister of Housing,
Communities and Local Government yesterday and urged for
reconsideration of this approach.”
Minister Archibald concluded: “My Department has
commissioned Ulster University Economic Policy
Centre to conduct a focused cost of doing business sectoral
study looking at the impact of the National
Insurance contributions increases and other factors such as
insurance, energy and property costs and the disparities in tax
regimes, such as VAT, across Ireland.
“It is important that we hear the voices of those
impacted which is why the team will be carrying out a series
of sectoral and business representative body
consultations to inform the research.”
Terms of Reference for the Cost of Doing Business research have
been published on the Department of Finance's website with the
study due to be concluded by the end of March 2025.
Notes to editors
- Terms of Reference for the Cost of Doing Business research
are available at www.finance-ni.gov.uk/publications/cost-doing-business-research
