Scottish Government Debate: Employer National Insurance Contributions

Tom Arthur S6M-16488 That the Parliament recognises the significant adverse impacts of the UK Government’s intended changes to employer national insurance contributions (ENICs) on Scotland’s businesses, third sector, public services and wider economy; believes that the impacts are likely to result in higher costs, job losses, increased prices and cause some charities and businesses to close altogether; notes the potential disproportionate impact of the changes on consumer-facing sectors of Scotland’s economy, such as retail, tourism and hospitality businesses, organisations providing social care and third sector organisations commissioned to provide public services; agrees with the significant concerns expressed by 50 organisations in Scotland, including COSLA and the STUC, who, along with the Scottish Government, wrote to the UK Government describing the risk to the vital services that they provide due to these additional costs, and calls on the UK Government to reverse this decision and not raise ENICs as planned in April 2025. Craig Hoy S6M-16488.3 As an amendment to motion S6M-16488 in the name of Tom Arthur (Employer National Insurance Contributions), insert at end “; warns that the increase to ENICs is a tax on jobs that will negatively impact employers and employees; acknowledges that, as a direct consequence of Scottish Government policy, the Scottish public sector is disproportionately exposed to increases in labour costs because the Scottish public sector is proportionately larger than in the rest of the UK and its salary costs impose a heavier burden on taxpayers; considers, therefore, that budget decisions by both the Scottish and UK governments will hurt taxpayers, consumers and workers in Scotland and will negatively impact growth, and supports common-sense Scottish Conservative and Unionist Party proposals for tax cuts to grow Scotland’s economy and give workers and businesses much-needed relief.” Daniel Johnson S6M-16488.2 As an amendment to motion S6M-16488 in the name of Tom Arthur (Employer National Insurance Contributions), leave out from "recognises" to end and insert “welcomes the record £5.2 billion of additional funding for Scotland delivered as a result of the UK Government’s Autumn Budget; agrees with the STUC that the additional positive measures that are set out in the draft Scottish Budget 2025-26 are ‘dependent on UK Government funding’; regrets that the fiscal changes called for by the Scottish Government would significantly reduce the level of funding available to Scotland’s public services; understands that the First Minister has publicly advocated for a cut to Scotland’s budget of £636 million; regrets that the Scottish National Party administration’s failure to grow Scotland’s economy has negatively impacted the level of funding available in the Scottish Budget over many years; understands that decisions around the level of staffing in Scotland’s public services are devolved to the Scottish Government, and calls on the Scottish Government to ensure that the record funding delivered by the UK Government reaches the frontline services that need it most.”