A SCOTTISH Government minister has warned that businesses are being forced into making "extremely tough decisions" due to Labour's tax hike, as she pointed to redundancies at a firm in her constituency.
Dunfermline MSP Shirley-Anne Somerville, who serves as the justice minister, blasted Labour's "tax on jobs" as she pointed to soon-to-come job losses at Sterling Home, which is Scotland's largest house fittings firm,.
Chancellor Rachel Reeves announced that employer National Insurance contributions will rise to 15% from April, with Scottish Government estimates showing that the tax increase will cost businesses an average of £850 per employee.
"Other businesses will also be forced into making extremely tough decisions due to this hugely unwelcome increase to their costs."
Somerville believes that SNP’s efforts to grow the job market are being marred by the the Westminster government’s policy.
She went on: “The SNP Scottish Government has made growing Scotland’s economy one of its priorities but efforts to support businesses and growth are being hindered by consistently poor decisions at Westminster.
"The public sector, charities, universities, hospices and care homes are all at significant risk of facing lasting damage.
"It is clear that the Chancellor must have an urgent rethink and reverse this foolish plan before any further harm is caused.”
MSPs have debated a motion regarding the “adverse impacts” that the Labour policy could have on the economy and job market.
Health Secretary Neil Gray (above) warned that further tax hikes could be "catastrophic" and a massive risk to the public sector.
The Scottish Greens have also criticised Labour’s increase on employers' National Insurance, warning of the “devastating impact” it could have on public services.
