West Lothian is bracing for a hefty £6 million bill from rising National Insurance costs, sparking concerns among local leaders and businesses alike.
West Lothian: The council is worried about a potential £6 million bill from National Insurance hikes. They can’t just sit back and hope Westminster will cover it.
Councillor Pauline Stafford from the SNP urged everyone to speak up at a recent council meeting. The council is facing some serious financial pressure.
During the meeting, Labour managed to pass an amendment with a casting vote. The Conservatives and Lib Dems chose to abstain again.
The SNP wants the council to demand assurances from the Labour government. They want to make sure Westminster will cover the rising National Insurance costs.
Councillor Janet Campbell pointed out that taxes are set to rise by £40 billion. A big chunk of that will come from a £25 billion increase in employers’ National Insurance contributions.
Starting in April 2025, the rate will jump from 13.8% to 15%. Plus, the threshold for when employers start paying will drop from £9,100 to £5,000.
The SNP’s motion highlighted that this could lead to a £750 million increase in public sector spending. But so far, only £350 million is expected from Westminster.
They urged the council to follow the Scottish Government’s lead in seeking guarantees. They fear cuts to public services if the costs aren’t fully covered.
While the exact costs for West Lothian Council are still unclear, the SNP believes it could be around £6 million.
A Labour amendment mentioned that negotiations are ongoing. They believe all parties expect the costs to be fully funded, but it’s still uncertain.
Council leader Lawrence Fitzpatrick criticized the SNP for relying on funding from the south-east. He pointed out that the council tax freeze has hurt local finances.
He added that Scottish public services shouldn’t have to absorb these extra costs without proper funding.
On the other hand, Conservative leader Damian Doran-Timson expressed hope for more funding. He wasn’t overly optimistic but wanted to wait and see.
He criticized Labour for raising taxes after campaigning against it. He said the National Insurance changes show a lack of understanding of business needs.
Councillor Sally Pattle from the Lib Dems raised concerns about the impact on social care providers and small businesses. She felt the Labour government didn’t consider these groups before making changes.
She emphasized the importance of small and medium enterprises, especially in retail and hospitality. These sectors are crucial for the local economy.
With changes coming in April and no confirmation yet, she urged the government to act quickly.
The vote ended in a tie, with Labour and the SNP each having 13 votes. The Conservatives and Lib Dems abstained, leaving the Provost to cast the deciding vote for Labour.
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