New analysis has fuelled fresh calls for the UK Government to reverse its National Insurance tax rise amid claims it is placing an increasing financial burden on businesses across Scotland.

Figures produced by the Scottish Parliament Information Centre suggest employers could be paying hundreds of pounds more each year for every member of staff, with the additional cost approaching £1,000 per employee in many cases.

The analysis estimates that employing someone on the Real Living Wage now costs businesses an additional £890 a year in National Insurance contributions, while the extra cost rises to £1,053 for an employee earning Scotland’s median annual salary of £39,879.

The figures come against a backdrop of wider concerns about the UK labour market, with recent data showing unemployment has increased since the Labour Government took office.

The latest figures have prompted renewed political pressure on incoming Prime Minister Andy Burnham to reconsider the policy, with critics arguing it is discouraging recruitment, reducing investment and making it more expensive for employers to grow.

Laura Mitchell MSP said:

“Andy Burnham must, as a priority, scrap the Labour Party’s National Insurance tax hike, which has destroyed jobs and cost Scotland’s businesses huge sums of money.

“This was an incredibly short sighted Labour government policy, which has created a high cost, toxic environment for businesses across Scotland and the UK, cutting jobs, squeezing wages, reducing investment and choking off economic growth.

“Analysis now shows that this policy is costing business in Scotland around £1,000 per employee.

“Is it any wonder why employment is up and fewer vacancies are opening.

“That is the cost of Westminster.

“Westminster policies have wiped billions of pounds from Scotland’s economy, causing unemployment and the cost of living to soar.

“It’s clear Scotland needs the full powers of independence so we can build a stronger economy and a better future.”

The National Insurance changes have been the subject of sustained criticism from businesses, charities and employers across a range of sectors, many of whom argue the additional costs have made recruitment and expansion more difficult.

The UK Government has previously defended the policy as part of its wider plans to strengthen the public finances, but pressure continues to build from businesses and opposition parties for the increase to be reconsidered.