The SNP has highlighted that Scotland faces more than £2 billion in higher taxes next year as a result of the UK Labour Government’s Budget.
The massive increase in the tax taken from Scotland, driven largely by increased employer National Insurance contributions, was raised by SNP MSP Bill Kidd in the Scottish Parliament today.
The cost to Scotland’s public services of the tax hike is estimated to be around £750 million, including childcare settings and care providers.
Reports suggest the UK Government has indicated that it will only provide around £300 million to cover the increased cost – less than half of the cost and leaving Scotland’s public sector to cover the shortfall.
The remainder of the increase in employer NICs will be borne by business across Scotland, with the OBR warning earlier this week that the estimated average £800 cost per employee, likely to be passed on to workers with lower wages.
SNP MSP Bill Kidd said:
“Labour came to power on the promise of no tax rises for working people.
“As each day passes, it becomes clearer that it will be workers who bear the brunt of the increases in taxes announced by the Chancellor last month.
“Earlier this week, the OBR told Holyrood’s Finance Committee that around three-quarters of the increases in NICs contributions will be passed on to workers in the form of lower wages.
“With a total cost to Scotland of over £2 billion next year, and an estimated average cost of around £800 per employee, this is a tax increase which will hit working people hardest in the pocket.
“Labour’s decision to hike National Insurance rates is proving to be disastrous for wages, public services, businesses and growth.
“Rather than asking those with the broadest shoulders to contribute more Labour are instead trying to balance their budget on the backs of charities and public services like the NHS.
