Commons Sense

House of Commons · Ministers' Questions

Employer NICs: Businesses

Wednesday 5 March 2025 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 1 Not answered 0

Key points

  • Susan Murray asked the Minister about the impact of changes to employer national insurance contributions on Scottish businesses.
  • The Minister acknowledged the significant contribution of Scotland's social care workers and noted that social care is a devolved matter.
  • Euan Stainbank highlighted that the Scottish Government received a record funding of 5.2 billion but criticized them for underfunding local councils.

Topics (select to filter)

Questions & Answers

Q1 Susan Murray Lib Dem Mid Dunbartonshire
Social Care Economy Scotland
Context

The question arises from concerns about the impact of increased national insurance contributions on small businesses, particularly in the care sector. A constituent's client, a care home owner, faces an annual increase of £70,000 due to these changes.

Question

What assessment has been made of the potential impact of changes to employer national insurance contributions on businesses in Scotland? A constituent has told me about one of their clients, which is a care home owner that is facing an increase in operating costs of £70,000 a year as a result of the national insurance contributions increase. Most of the business’s caring staff work part time, which suits their family circumstances. However, for each part-time member of staff, the business must pay an additional £615 a year as a result of the change to the national insurance contributions threshold in the Government's October Budget.

Answer from The Parliamentary Under-Secretary of State for Scotland (Kirsty McNeill)

I am sure that the hon. Member, and Members across the House, will join me in paying tribute to Scotland’s social care workers for the incredible contribution they make. Social care is a devolved matter. The Scottish Government have received the largest budget settlement in the whole history of devolution, as well as support for additional employer national insurance costs. They can choose to deliver that additional support for social care.

Partly answered

Not addressed: Did not directly address the specific ask about helping businesses in the care sector hit by increased staffing costs.

How: Social Care Is A Devolved Matter

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Q2 Euan Stainbank Lab Falkirk
NHS Scotland Local Government
Context

The SNP Government in Scotland has faced criticism for underfunding local councils. Falkirk Council faces a £28 million budget shortfall after eight years of SNP control.

Question

The impact of net changes in the Budget is £5.2 billion more for Scotland. That is record funding to invest in our NHS, protect the successes of devolution and fix our local services, but the Scottish Government have squandered the latter opportunity by continuing to underfund our councils, leaving Falkirk council with a £28 million hole to plug after eight years of SNP control. Does the Minister agree that the £5.2 billion secured for Scotland by the Labour Government could have been used to fix local government, but instead the SNP has chosen to leave the people of Falkirk to pick up the bill?

Answer from The Parliamentary Under-Secretary of State for Scotland (Kirsty McNeill)

Not only do I agree with my hon. Friend that the SNP Government are at risk of squandering this historic opportunity for Scotland, but I stress that the SNP Government might like to ask their Members of Parliament why they voted against this historic Budget in Scotland’s interests.

Not addressed: Changed subject entirely without addressing the specific ask about local government funding issues.

How: The Snp Government Are At Risk Of Squandering

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