National Insurance contributions are the UK’s second-largest revenue stream behind income tax.
It is paid by workers and the self-employed on earnings and profits, and by employers on top of the wages they pay out.
This, of course, applies to public sector employees who work for the Scottish government.
About 600,000 people are employed in Scotland’s public sector, making up 22% of the total workforce – compared to about 17% in the UK as a whole.
That fuelled concerns at Holyrood that Scotland would be short changed if compensation for the National Insurance increase is not proportional to its public sector.
A Scottish government spokesperson said the Scottish Parliament had agreed the UK government should reimburse the cost of the change – “over £500m”.
They said: “This UK government policy risks hampering economic growth and damaging public services and whilst discussions with the Treasury are ongoing, we still do not have certainty ahead of the Scottish budget.”
Credit: Source link
