The SNP has called on the UK Labour Government to urgently reverse its planned increase to National Insurance before it inflicts serious damage on Scotland’s public sector, charities and businesses.
Chancellor Rachel Reeves announced in her first Budget that employer National Insurance contributions will rise to 15% from April.
This move is expected to cost Scotland’s public sector £549 million, with charities facing an additional £75 million burden, universities £49 million, and independent care providers £30 million.
Businesses will also feel the pinch, with the Scottish Government estimating an extra cost of £850 per employee.
The Office for Budget Responsibility (OBR) has warned that three-quarters of this cost will be passed onto workers through lower wages, with the rest coming out of business investment.
The SNP is challenging Scottish Labour leader Anas Sarwar to stand up for Scotland by pressuring his party’s leadership in London to abandon the increase.
SNP MSP Kenneth Gibson has warned that the tax hike will directly contradict Labour’s election promises.
“Labour came to power on a promise of no tax rises for working people, yet this National Insurance hike is exactly that,” he said.
“This tax on jobs will hit wages, public services, businesses and economic growth hard.”
“The Chancellor must urgently U-turn before irreversible damage is done.”
“The SNP Scottish Government is committed to growing Scotland’s economy, but these efforts are being undermined by Labour’s reckless tax increase.”
“Today, Anas Sarwar and his Scottish Labour MSPs have a chance to prove they are willing to put Scotland first by pushing their London bosses to drop this ill-conceived plan.”
“If Labour does not reverse this decision, it will go down as yet another broken election promise, with Scotland paying the price.”
