Today's employer National Insurance increase will have a
significant impact on public services and cause economic damage
for business, Finance Secretary has said.
The estimated cost to organisations delivering public services in
Scotland is over £700 million in 2025-26, with an expected
£400 million shortfall in funding from the UK Government.
Ms Robison said:
“The UK Government's National Insurance hike is bad for our
public services and bad for business. The UK Government is
short-changing the Scottish Government's funding for vital
services like the NHS and putting business at a disadvantage with
this tax on jobs.
“Given that UK Government ministers claim their number one
priority is driving economic growth, it is inexplicable that they
would take a decision that will impact employers in this way.
“The Chancellor is also yet to confirm the additional funding we
have been promised to mitigate employer National Insurance
contributions in the public sector, despite the new financial
year starting and the policy coming into effect. It is estimated
that there will be a £400 million public sector funding shortfall
and this will have wide reaching consequences on the services
people across Scotland rely on.
“I share the frustration of organisations from across civic
society that the Chancellor is refusing to fully cover the
additional costs they face and the dismay of businesses that are
facing additional costs in what is already a tough economic
climate.
“Coupled with a Spring Statement which balanced the books on the
backs of disabled people, the decision-making of the UK
Government is bringing back the worst mistakes of austerity and
they must take responsibility for the pain that will be caused by
their actions.”
Background
A joint letter from First Minister and COSLA President Shona
Morrison, raising concerns about the employer National Insurance
increase, was supported by 48 organisations including the
Scottish Trades Union Congress, Scottish Council for
Voluntary Organisations and British Dental Association.
Call for clarity on National
Insurance - gov.scot
National Insurance
Contributions: public sector costs - gov.scot
