Government will not have certainty on ‘huge’ £500m sum when budget set – Swinney

The Scottish Government will not have certainty on reimbursement for the national insurance contributions (NIC) rise when it publishes its budget on December 4, John Swinney has said.

The First Minister called on the Treasury to provide more clarity on how public services will be compensated for the rise.

Chancellor Rachel Reeves announced an increase in the threshold paid by employers in her first Budget last month, estimated to raise more than £25 billion.

But the Scottish Government has stressed that public services should be shielded from the increase, which it says will cost the public purse £500 million.

The UK Government says the Scottish Government will receive an extra £3.4 billion next year as a result of the Chancellor’s decisions as well as £1.5 billion in the current financial year.

Speaking to journalists during a visit to Wardie Primary School in Edinburgh on Wednesday, Mr Swinney said discussions with the Treasury on reimbursement for public services are ongoing.

The First Minister said: “We still do not have certainty, and I don’t expect us to have certainty on this question when we set a budget on December 4.

“Now this is not some trivial, inconsequential factor. This is half a billion pounds.

“It’s a huge amount of money about which we have financial uncertainty as we go into the budget.”

He said he is particularly concerned about the impact of NIC rises on the care sector.

As the SNP is a minority government at Holyrood, it will need votes from another party in order to pass its budget plans, which are published on December 4.

Mr Swinney also hit out at Scottish Labour’s proposal for winter fuel payments if it wins power following the 2026 Holyrood elections.

Anas Sarwar’s party announced it would create a devolved payment if it wins the keys to Bute House in 2026, but would make it a “fairer system” through means testing.

Mr Swinney said this is “abject hypocrisy” and is intended to “clean up the mess left behind by the decisions of the UK Labour Government”.

The Treasury has been contacted for comment.