Labour's NIC increase sparks SNP demand for Scottish service cost data
The SNP has pressed the UK Government for figures on how Labour's higher employer National Insurance rates are affecting Scottish police, fire and prison services, but the Treasury says confidentiality rules block disclosure.
Labour's post-election policy raised the employer National Insurance contribution from 13.8% to 15% and reduced the earnings threshold to £5,000, a move projected to generate £20 billion a year. The SNP says this increase is forcing Scottish emergency services to pay higher taxes and has lodged three parliamentary questions seeking the exact additional cost to Police Scotland, the Scottish Fire and Rescue Service and the Scottish Prison Service for 2025-26.
James Murray, the Financial Secretary to the Treasury, said HM Revenue & Customs cannot publish the figures because they are protected taxpayer information under the Commissioners for Revenue and Customs Act 2005. While the SNP accuses Labour of shamefully hiding the impact, Labour maintains the hike targets employers and therefore does not breach its manifesto promise not to raise National Insurance for workers. Analysis by the Scottish Parliament Information Centre estimated the rise adds roughly £1,000 per employee for median-salary workers and about £890 for those earning the real living wage. The dispute highlights tensions between Westminster and the Scottish government over fiscal transparency and the broader debate on Scottish independence.
Why it matters
It reveals how UK tax policy may be straining Scottish public services and raises questions about governmental transparency.
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