In Parliament

Bob Doris (Glasgow Maryhill and Springburn) (SNP)

To ask the Scottish Government whether it will provide an update on the potential impact on Scotland’s public finances as a result of the United Kingdom Government increasing employer national insurance contributions. (S6O-04591)

The Cabinet Secretary for Finance and Local Government (Shona Robison)

The Labour UK Government’s hike in employer national insurance contributions adds more than £700 million in costs to the delivery of public services such as the national health service, schools, local government, universities, social care providers and a wide range of third sector organisations.

Despite our calls for full reimbursement, it is clear that the support from the UK Government to meet those costs will fall more than £400 million short of what is required.

Bob Doris

I am sure that the cabinet secretary will share my concerns that Labour’s brutal employer national insurance contributions increase may risk the financial viability of some businesses and, in doing so, compound the impact on Scotland’s public finances. Does she agree that the UK Government must take responsibility for that and appropriately support businesses across Scotland, which are facing very specific UK-created pressures?

Shona Robison

Absolutely. In recognition of the damaging implications of that increase for businesses, public services and communities, the Scottish Government has called on the UK Government to reverse it. The increase will, of course, lead to opportunity costs in terms of money that could otherwise have provided the additional funding that Sarah Boyack was calling for, or additional funding for local authorities or the health service. Those opportunity costs are resulting in money for public services going straight back to the Treasury, and that is totally unacceptable.