West Lothian is bracing for a hefty £6 million bill from rising National Insurance costs, sparking concerns among local leaders and businesses.
West Lothian: The council is really worried about the potential £6 million hit from rising National Insurance costs. They can’t just sit back and hope the government will cover it.
At a recent council meeting, Councillor Pauline Stafford from the SNP urged everyone to speak up. She emphasized that they need to demand answers from the Labour government.
It seems the council is in a bit of a bind. The Labour-led group barely passed an amendment, with the Conservatives and Lib Dems choosing to abstain again.
Stafford pointed out that taxes are set to rise by a whopping £40 billion, with a big chunk coming from employers’ National Insurance contributions. The Chancellor, Rachel Reeves, plans to increase the rate from 13.8% to 15% starting in April 2025.
Plus, the threshold for when employers start paying National Insurance is dropping from £9,100 to £5,000. That’s a big deal for local businesses.
The council’s motion highlighted that this could lead to a £750 million increase in public sector spending, but only £350 million is expected to come from Westminster.
They’re calling on the council to follow the Scottish Government’s lead and get guarantees that these costs will be fully covered. There’s a real fear that any shortfall could mean cuts to public services.
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, but it’s still uncertain if the full costs will be funded.
Council leader Lawrence Fitzpatrick had some strong words, saying the SNP’s approach relies too much on funding from the more prosperous areas. He pointed out that the council tax freeze over the past eight years has really hurt local finances.
On the other hand, Conservative leader Damian Doran-Timson expressed hope for more funding but wasn’t overly optimistic. He criticized the Labour government for raising taxes after campaigning against it.
Councillor Sally Pattle from the Lib Dems raised concerns about the impact on social care providers and small businesses, saying the Labour government didn’t seem to consider them at all.
With these changes coming in April and no clear answers yet, there’s a lot of anxiety in the air. The vote at the meeting ended in a tie, with Provost Cathy Muldoon casting the deciding vote for Labour.
Sign up to Edinburgh Live newsletters for more headlines straight to your inbox
