Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions she has had with Aberdeenshire Council on increases in Employers National Insurance contributions in the Autumn Budget.

The Government takes into account all representations made ahead of the Budget, and meets with stakeholders on a regular basis, including officials and ministers from the Scottish Government.

Funding for local authorities in Scotland, including support for additional employer National Insurance Contribution (NICs) costs falls under the devolved responsibilities of the Scottish Government.

At Autumn Budget 2024, we set aside funding for public sector employers for additional NICs costs. This includes funding for the Scottish Government through the usual application of the Barnett formula.

Funding resulting from the employer NICs policy change will be in addition to the £47.7 billion the Scottish Government is receiving in 2025-26, which already includes an additional £3.4 billion through the operation of the Barnett formula. This settlement is the largest in real terms since devolution.

Decisions on devolved priorities, including local authority funding, are a matter for the Scottish Government. It is for the Scottish Government to determine how to allocate its budget across devolved areas and it is accountable to Scottish Parliament for these decisions.