Councils Face £100M National Insurance Bill

Scottish councils still owe £100M for national insurance. Despite government aid, a funding gap endures, impacting public services.

Councils Face £100M National Insurance Bill
Councils Face £100M National Insurance Bill

Local councils face a big bill that covers rising national insurance costs, totaling almost £100 million, according to an organization representing councils.

The Scottish Government plans to help by covering 60% of the increase, which stems from higher employer contributions caused by the UK Government.

A council spokeswoman stated this leaves a £97 million gap, with many officials opposing high council tax rates. Councils now face tough decisions to protect services.

The spokeswoman noted that while UK funding is coming, it doesn’t cover all services like adult social care, illustrating the mounting problems councils are facing.

The council organization highlighted that the cost equals a 3.3% council tax hike, and the Scottish Government wants full UK funding for Scotland’s public sector.

The Scottish public sector employs more people compared to the UK average; therefore, the UK may only give a population-based share, which could cost Scotland millions.

The Finance Secretary acknowledged the issue and will provide £144 million to help with the national insurance costs, which equals a 5% national council tax increase.

The Secretary said more money was already provided, and he wants the UK to fully fund its policy. He hopes the councils support his efforts so that urgent decisions can be made.

These UK decisions should inform spending decisions for the NHS, police, and councils. A UK Government spokesman countered, asserting that Scotland gets more funds than ever.

Scotland receives 20% more funding per person relative to UK spending on average, the spokesman said. He added that Scotland decides how to allocate a £47.7 billion settlement.

Image Credits and Reference: https://news.stv.tv/scotland/councils-still-face-100m-bill-to-cover-national-insurance-hike-says-cosla
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