Robison calls for more as less than half of NI rise funded

Scotland’s Finance Secretary has called for the UK Government to fully cover the impact of the rise in National Insurance contributions, as it was revealed that less than half of the estimated amount will be provided.

The Government announced plans to increase employer contributions in October, meaning the public sector will be forced to pay more.

While the rise will be fully funded in England, Scotland’s larger public sector workforce means the Government will have to pay more per head should it look to mitigate the increase.

On Thursday, it was confirmed £339m will be given to the Scottish Government, well short of its estimate of the more than £700m cost to the public purse.

Shona Robison, who has been pushing for the increase to be fully funded for the public sector, repeated her calls after the announcement.

“We have been calling for the UK Government to abandon its employer National Insurance rise, which risks damaging the economy by making it harder for businesses to take on or keep staff,” the Finance Secretary said.

“Failing that, we have asked that they fully fund this tax increase to ensure Scotland’s NHS, councils and other public services don’t lose out on vital revenue.

“As such, it is deeply disappointing that the funding confirmed today falls so far short of the more than £700 million bill we estimate public services face – less than half of the cost of the National Insurance hike.”

She added: “This settlement fails to take account of the fact that we have a larger public sector per person than other parts of the UK.

“It feels like Scotland is now being punished for having decided to employ more people in the public sector and to invest in key public services.

“I would urge UK ministers to reconsider – and not leave Scotland with a bill worth hundreds of millions of pounds.”

The Treasury has consistently said that the Scottish Government will receive funding in proportion to the Barnett formula, which calculates settlements to the devolved nations based on population share.

The UK Government has been contacted for comment.