Oral Answers to Questions

Susan Murray Excerpts

Wednesday 5th March 2025 Commons Chamber

[Susan Murray (Mid Dunbartonshire) (LD)]

5. What assessment he has made of the potential impact of changes to employer national insurance contributions on businesses in Scotland.

[The Parliamentary Under-Secretary of State for Scotland (Kirsty McNeill)]

Properly funding public services and restoring economic stability requires difficult decisions on tax, which is why we are asking employers to contribute more. Stabilising the public finances is the only way to create the long-term stability in which businesses can thrive. The Government recognise the need to protect the smallest businesses, which is why we have more than doubled the employment allowance to £10,500, meaning that more than half of small businesses will either gain or be unaffected.

[Susan Murray]

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. In Mid Dunbartonshire, and across the UK, there is growing demand for social care. What will the Government do to help businesses in the care sector that have been hit by these increased staffing costs at a time of significant rises?

[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 of course a devolved matter. The Scottish Government have now received the largest budget settlement in the whole history of devolution, as well as support for additional employer national insurance costs. The Scottish Government can choose to deliver that additional support for social care, and I very much hope that they do so.