LABOUR MPs representing Scotland’s biggest city have failed to raise concerns with the Chancellor about her “hammer blow” jobs tax, the Sunday National can reveal.
Glasgow’s representatives have not alerted Rachel Reeves about the likelihood that Labour’s result in cost-cutting employers making lay-offs, as predicted by economists – a document obtained by this paper shows.
According to a response to a Freedom of Information request to the Treasury shared with us, none of the city’s six MPs, who collectively represent around 11% of the Scottish population, had written to the Chancellor about the tax hike unveiled in Labour’s first Budget late last year.
The changes, which came into place last week, will see the amount of National Insurance employers are required to pay increase from 13.8% to 15%, with the salary threshold at which contributions have to be made dropping from £9100 to £5000.
The Fraser of Allander Institute estimates that the changes could cost an average of £931 for each public sector worker in Scotland, while SCVO, which represents Scotland’s charities, expects the cost to the third sector to be around £75 million.
Redundancies are already being made, according to the British Chambers of Commerce which found that 17% of companies had already begun laying off staff.
Recruitment has also taken a battering, with only 20% of firms increasing their workforce this year – the lowest level since the first three months of 2021.
Ricky Bell, deputy leader of Glasgow City Council and city treasurer, said: “Every Labour councillor elected in July did so on a promise of standing up for Glasgow and fighting for a fair deal for our citizens.
“We know the cost of the Employer National Insurance Contributions rise amounts to £30m to Glasgow City Council alone, and promised public sector mitigations have come up woefully short.
“The increase is a hammer blow to small businesses, charities, and social landlords across the city, with many warning of redundancies and other cost-cutting measures.
“Yet Glasgow’s Labour MPs are missing in action. Not a single one has had the guts to stand up to their London bosses and demand the change our city was promised.”
Glasgow South West MP Zubir Ahmed (below) said: “On July 4, Glasgow voted for an upgrade from keyboard warrior grandstanding SNP MPs to Labour MPs who sit in government and deliver every day, including delivering a record additional £5.2 billion settlement for Scotland.
“While SNP politicians pen letters like bystanders, Labour MPs roll their sleeves up and legislate to deliver thousands of Glaswegian workers higher wages and pensioners a bigger state pension.
“Meanwhile Glasgow SNP councillors give away taxpayer money to council fat cats while they cut the pension contributions of ordinary workers, they leave potholes unfilled and let antisocial behaviour proliferate.
"Glaswegians have woken up to the deflection and division served up by the SNP, our city is being left behind compared to cities like Labour-run Manchester. We can’t afford them to be in charge for a minute longer.”
