Current status: Answered by Shona Robison on 27 February 2025
To ask the Scottish Government what assessment it has carried out on the impact on its four strategic priorities of the UK Government’s decision to raise employer national insurance contributions on public and third sector bodies.
I have raised concerns with the UK Treasury about the impact on public services if this reserved tax increase is not fully funded. The Scottish Government has published updated estimates of the impact of the increase in employer national insurance contributions on the public sector in Scotland. These estimates indicate the combined impact on the public sector and commissioned services is over £700 million. If the UK Government’s reported allocation is all that is provided, the Chancellor will be short-changing services the public depend on by over £400 million. The Scottish Council for Voluntary Organisations estimates that the third sector in Scotland will face additional costs of £75 million per year, plus wider inflation.