The SNP has renewed its call for Labour to reverse a rise in employer National Insurance Contributions, after a new report showed the strain it is placing on Scottish firms.
The Fraser of Allander Institute’s latest business survey found that 60 per cent of companies have already made adjustments to cope with the hike, including cutting back on hiring, increasing prices or reducing staff benefits.
The report, which draws on responses from more than 300 firms across all 32 of Scotland’s local authorities, did note modest improvements in activity, turnover, investment and employment in the second quarter of 2025.
But despite those signs of resilience, net balances remain negative and nearly 40 per cent of businesses expect to make further cutbacks in the months ahead.
The SNP says the findings underline the need for a full review of what it calls Labour’s “tax on jobs” and argues that only independence can deliver long‑term economic stability and growth for Scotland.
Kenneth Gibson MSP said Scottish businesses were working hard to recover but being held back by decisions made at Westminster.
“Scotland’s businesses are doing their best to recover, despite being held back by Westminster’s economic mismanagement, not least Labour’s decision to hike employer National Insurance Contributions,” he said.
“Scottish firms are being forced to absorb the consequences of a Labour government that has no regard for Scotland.
“Labour must listen to businesses and urgently reverse its tax on jobs.”
He added that while Scottish businesses were adaptable and forward‑looking, they remained constrained by policies set elsewhere.
“This report shows what the SNP has long been saying: businesses in Scotland are resilient, forward looking and adaptable,” he said.
“But without the powers of independence we remain at the mercy of decisions taken at Westminster that do not reflect Scotland’s needs or ambitions.
“Only with independence can we build a fairer, more resilient economy that works for Scotland’s businesses and delivers economic stability, support for exporters and a long‑term plan for sustainable growth.”
