The SNP has claimed new analysis shows Labour’s changes to National Insurance are pushing up prices for Scottish households and putting pressure on businesses.
The figures, published by the Scottish Parliament’s Information Centre and highlighted by the SNP, suggest rising labour costs are contributing to price increases and reduced turnover for firms.
The party argues that changes introduced after Labour came to power in 2024, including adjustments to employer National Insurance Contributions, are feeding directly into the cost of living.
Businesses, it says, are facing higher employment costs and passing some of that burden on to customers.
The SNP is calling on the UK Government to reverse the changes.
Kenneth Gibson MSP said:
“The Labour Party’s tax on jobs is having a devastating effect on the cost-of-living crisis for Scottish households.
“The SNP warned the UK Labour government about the damage that lowering the National Insurance threshold and increasing employer contributions would have on Scotland’s economy, but they didn’t listen.
“Now it is becoming clear that this choice by Keir Starmer is forcing businesses to increase their prices, this cannot go on.
“Keir Starmer has become accustomed to performing U-turns.
“He must now listen to businesses and ditch his tax on jobs.
“The reality is that Westminster does not work for Scotland.
“Scotland needs, and deserves, a fresh start with independence and it is only by voting for the SNP in May that this can be achieved.”
The debate over National Insurance comes at a time when many households continue to feel the strain from higher food, energy and housing costs.
With an election approaching, the argument over who is responsible for rising prices is likely to intensify.
