Scotland ‘being punished for bigger public sector’ due to NI rise, says Robison
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Scotland’s Finance Secretary has said the country is being “punished” for having a larger public sector due to the UK Government’s increase to national insurance contributions. Chancellor Rachel Reeves angered the Scottish Government when the decision to increase the payments from employers was announced in her October Budget.
Shona Robison has estimated the cost to Scotland’s finances could be £700 million as a result of its bigger public sector workforce. The Chancellor announced funding to protect the public sector in England from the increase, with a population share of the cash likely to be between £290 million to £350 million.
Speaking ahead of an appearance at the Local Government, Housing and Planning Committee at Holyrood this week, Ms Robison warned of the impact the increase could have on councils if not mitigated. “Scotland’s public services face a bill of more than £700 million as a result of the UK Government’s increase in employer national insurance contributions,” she said.
“There have been indications of likely funding reported in the media, but these fail to take account of the fact that we have a larger public sector per person than other parts of the UK, leaving us some £300 million short. “It feels like Scotland is now being punished for having decided to employ more people in the public sector and to invest in key public services.
