UK Government urged to exempt Scottish hospitality from national insurance hike

UK Government urged to exempt Scottish hospitality from national insurance hike
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UK Government urged to exempt Scottish hospitality from national insurance hike
Author: Paul Cargill
Published: Feb, 10 2025 00:01

Summary at a Glance

UK Government urged to exempt Scottish hospitality from national insurance hike Westminster is being urged to exempt the Scottish hospitality industry from the planned increase in national insurance contributions amid warnings of the risk of many businesses “going to the wall”.

Scottish affairs spokesperson Christine Jardine MP said: “Restaurants, pubs and hotels across Scotland are warning that the UK Government’s national insurance hike risks many of them going to the wall, but the Chancellor just doesn’t seem to be listening.

“In addition to capping corporation tax for the duration of parliament, the Scottish Government will receive additional Barnett funding on top of a record £47.7 billion settlement as part of support provided in relation to changes to employer national insurance.”.

Analysis carried out by the Scottish Liberal Democrats shows that in 2025-26, the additional tax bill for hospitality businesses is estimated at around £71.8 million.

A UK Government spokesperson said: “We delivered a once-in-a-parliament budget to wipe the slate clean and deliver the stability businesses need, laying the foundations for economic growth.

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