On 01 October, Kenneth Gibson MSP received a reply to a written question, asking about the impact of UK Employer’s National Insurance contributions on Scotland’s public sector.
The response showed the impact of the increase. As yet, confirmation is awaited on whether or not this £151 million clawback will be restored by the Treasury.
Kenneth, Convener of Holyrood’s Finance Committee, said:
“The Tories take with one hand - and then take back with the other.
“Boris Johnson said additional resources will make their way to Scotland.
“But now we know, not only does his National Insurance hike disproportionately take money out of the pockets of the lowest paid, he is also misrepresenting the scale of the benefit to Scotland with this massive £151 million clawback.
“Scotland will not be fooled by a Prime Minister who clearly cannot be trusted.”
SCOTTISH PARLIAMENT WRITTEN ANSWER, 1 October 2021
Index Heading: Scottish Exchequer
Kenneth Gibson (Cunninghame North) (Scottish National Party):
To ask the Scottish Government what information it has regarding how much the increase in employers' national insurance payments will have on (a) the NHS, (b) local government and (c) all other parts of the public sector in Scotland.
Tom Arthur: Our initial estimates are that the increase in employer National Insurance contributions will result in the following costs:
(a) NHS - £67 million (b) Local Government - £31 million (c) Other parts of public sector - £53 million
Combined these come to an initial cost estimate of £151 million across the public sector in Scotland.