SNP MSP for Na h-Eileanan an Iar, Alasdair Allan, has supported Finance Secretary Shona Robison in recent calls for clarity from the UK Government on whether new National Insurance costs for local authorities in Scotland will be fully met. The call comes as council budgets are being finalised across Scotland.

In light of Labour Chancellor Rachel Reeves’ announcement in 2024 that National Insurance will increase for employers from April 2025, concerns are mounting that Scotland’s local authorities may be faced with a £700 million bill as a direct result.

Commenting, Alasdair Allan said:

“With a significantly larger public sector than other areas of the UK, the impact of this increase in National Insurance will be greater in Scotland than elsewhere.  

“Whilst there have been rumblings in the media of compensation being set aside by the UK to assist local authorities with the impact of these increases, we have no confirmation yet as to whether this will be enough to cover the actual extra cost. 

“The UK Government must act now to clearly outline what financial support will be made available to local authorities as budgets are finalised, ensuring councils can continue to provide essential public services."

 

 

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