Scots are bracing for a fresh wave of price hikes as Labour’s National Insurance increase kicks in.
The move, which raises employer contributions, is already sending ripples through the economy.
A BBC survey of 121 businesses revealed 77 plan to hike prices in response to the change.
The likes of Lush, Kwik Fit, and several hospitality firms have warned they will pass on the cost to customers.
The tax rise comes as households face another rise in energy bills, the third since Labour came to power.
Families are already under pressure from soaring costs in food, housing, and utilities.
This new burden risks creating what SNP politicians call a “perfect storm” of wage stagnation and consumer price rises.
Many employers also told the BBC they would be freezing or cutting back on hiring to manage the higher tax burden.
Some even admitted they may need to make redundancies to absorb the added costs.
SNP MSP Rona Mackay hit out at Labour’s handling of the economy.
She said the tax on jobs would deepen the cost-of-living crisis for millions across Scotland.
She pointed to Labour’s broken promise of cutting energy bills by £300, highlighting that bills have instead risen by a similar amount since they took office.
Mackay warned that economic stagnation, higher costs, and weakened consumer confidence were all linked to Labour’s missteps.
She praised the SNP’s commitment under John Swinney to focus on sustainable economic growth.
Mackay urged Labour to “come good on at least one promise” and take urgent action to support struggling households.
She added that the public were running out of patience with a government that says one thing and does another.
The National Insurance increase affects all employers, but small and medium-sized firms are expected to feel it most.
Retailers and service-based businesses say they are at breaking point, with margins already razor-thin.
The knock-on effect is likely to be felt at the tills across the country as prices creep up yet again.
Experts warn that without real intervention, the poorest will be hardest hit.
The policy has reignited debate around how best to grow the economy without squeezing workers and businesses alike.
There are now growing calls for Labour to reconsider the move and explore fairer alternatives.
Without urgent change, many fear the cost-of-living crisis could spiral further out of control.
