Moray SNP News

LABOUR’S NATIONAL INSURANCE HIKES SET TO COST MORAY COUNCIL £3M

UK GOVT MUST FULLY COMPENSATE PUBLIC SECTOR FOR NIC INCREASE 

The Labour UK Government’s hike in National Insurance Contributions for employers is set to leave Moray Council £3m worse off and could lead to higher council tax bills for households in Moray.

Information provided to Moray’s SNP MSP Richard Lochhead shows the cost of the hike for the Council’s directly employed staff is £4m for the upcoming financial year. The Scottish Government has committed to providing local authorities with an additional £144m to cover 60% of the extra costs they face, taking the bill for directly employed Council staff in Moray down to £1.6m.

However, Moray Council’s contracted services and health and social care staff costs adds a financial burden of £1.4m leaving the local authority with a total of £3m to find to pay for Labour’s NI hike.

Mr Lochhead has slammed the UK Labour Government for its ill-thought out tax on jobs and has expressed serious concerns that it will lead to significantly higher council tax bills for Moray residents.

Commenting Richard Lochhead MSP said:

“The Labour UK Government’s tax on jobs is causing serious financial problems for both the public and private sector, including for Moray Council.

“Scottish Ministers are providing local authorities with an extra £144m to cover 60% of the additional costs they face, over and above the record funding of £15bn for local councils in the Scottish budget.  

“Despite this additional funding from the Scottish Government, Moray Council will still have to find £3m to cover the cost of the hike in national insurance – and responsibility for that lies squarely at the door of the UK Chancellor.

“The pressures the NI increase is putting on Moray Council is significant and council tax payers will undoubtedly be left to pay the price – whether that is through cuts to services or substantially higher council tax bills next year.

“Labour boast they’re investing in public services but in reality they are giving with one hand and taking with another. Moray Council – and other public services – must be fully compensated by the UK Government for this ill-thought out NI hike.”

Cllr Shona Morrison – who recently raised this issue at a meeting of the Moray Council – added:

“This situation is incredibly concerning for Moray Council.

“The UK Government's decision, as it stands, to not fully fund their policy has left us with a huge degree of uncertainty as the Council looks to set its budget.  

“I was relieved to gain unanimous support across the chamber to ask the Council Leader to write to the Chancellor setting out our concerns.”