S3O-10347: National Insurance Contributions

To ask the Scottish Executive what discussions it has had with the UK Government regarding proposals to increase national insurance contributions.

Answered by John Swinney (29/04/2010): Besides the impact on Scottish employers in the private sector the increase in national insurance contribution rates will result in approximately £104 million of the Scottish Government''s budget being returned to the Treasury in the form of higher tax payments. Were the money to stay in Scotland it could pay for approximately 2,300 more police officers or 4,000 more nurses each year.

We have made it clear that we disagree with this increase especially when the country is emerging from a long and severe recession. We will continue to protest that this cut should be reversed to avoid further burdens on Scottish employers and protect front line public services in Scotland.