THE Scottish Greens have slammed Labour’s increase on employers' National Insurance, warning of the “devastating impact” it could have on public services.
The party's co-leader, Lorna Slater, was speaking ahead of a Scottish Government debate on the increase, where called on the UK Government to introduce a wealth tax which she said would raise funds “while ensuring it is the best-off that are paying the most”.
Slater warned that failing to do so would cause anxiety and possible cuts “by implementing a tax increase on service providers.”
National Insurance contributions for employers are set to rise to 15% from April – the Scottish Government estimates it will cost businesses £850 per employee on average.
It has been warned that the hike would hit the budgets of charities and public sector bodies.
We told how Health Secretary Neil Gray said the consequences of the hike could be "catastrophic", describing it as the "greatest risk" to the public sector in 2025.
Meanwhile, Slater said: “Without full funding, this [National Insurance] increase could do a lot of damage to vital services like health and social care as well as punishing small businesses and charities.
“There is more than enough money to ensure that services are fully funded and that everyone can have security and a good standard of living, but so much of it is being hoarded by a small number of very wealthy people.”
Her sentiments have been echoed by Scottish Government Employment and Investment Minister Tom Arthur, who said earlier this week that the rise is likely to result in higher prices for consumers and endanger economic growth.
He described the hike as a “tax on jobs” in his assessment of the move.
Slater continued: “Labour has refused to provide clarity about how it will offset the costs it is choosing to inflict.
“It’s a cowardly move which has been done to avoid raising taxes on the richest people, including the ones who bankroll the Labour Party.
“Rather than saddling overstretched service providers with anxiety and extra costs, the Prime Minister and his chancellor should be asking the super wealthy to pay their fair share.”
