Scottish Government Debate: Impact of National Insurance Increase on Public Services

Neil Gray S6M-15529 That the Parliament believes that the UK Government should fully reimburse the over £500 million costs of employer national insurance contributions to the delivery of public services in Scotland as a result of the UK Autumn Statement; recognises that, if the Chancellor of the Exchequer does not fully reimburse these costs, it will have a detrimental impact on the services that the people of Scotland rely on, and notes with concern the wider impact of the increase in employer national insurance contributions on the education, hospice and charitable sectors, not least for those who deliver services such as social care. Craig Hoy S6M-15529.2 As an amendment to motion S6M-15529 in the name of Neil Gray (Impact of National Insurance Increase on Public Services), leave out from "should" to end and insert "increasing employer national insurance contributions will have a detrimental impact on all sectors of Scotland’s economy, including the public, private and voluntary sectors; further believes that it will harm the ability of the NHS in Scotland to deliver services and will undermine social care and third sector organisations involved in public sector delivery; recognises that the rise in employer national insurance contributions is a breach of the Labour Party’s manifesto promise, which stated that it will not increase national insurance; acknowledges that this tax rise on jobs will disproportionately impact Scotland due to a higher number of public sector workers and higher public sector pay levels; notes that the Scottish Government’s policy decisions have already increased the tax burden on hardworking people and businesses in Scotland; calls on the UK Government to reverse its increase to employer national insurance contributions, and further calls on the Scottish Government to use its Budget on 4 December 2024 to start the process of reversing the increased tax burden that it has imposed on Scotland’s economy." Jackie Baillie S6M-15529.3 As an amendment to motion S6M-15529 in the name of Neil Gray (Impact of National Insurance Increase on Public Services), leave out from "believes" to end and insert "understands that the decisions taken by the Chancellor of the Exchequer in the Autumn Statement were necessary to fix the foundations of the economy and fund public services; welcomes the increase to the Scottish devolved budget of £1.5 billion in 2024-25 and £3.4 billion next year, which will deliver the highest ever devolved budget settlement in 2025-26; recognises that the Chancellor of the Exchequer has committed to providing funding to the public sector to support it with additional costs associated with changes to employer national insurance contributions, and calls on the Scottish Government to engage with organisations in the education, care and charitable sectors in the deployment of this additional funding, and to use its Budget to guarantee the sustainable delivery of frontline public services."