Employer National Insurance Contributions

First Minister’s Question Time – in the Scottish Parliament at on 9 October 2025.

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Photo of Michelle Thomson Michelle Thomson Scottish National Party

The latest Scottish Chambers of Commerce quarterly economic indicator survey, which was published this morning, shows that seven out of 10 Scottish firms continue to struggle with higher employment costs and have concerns about further potential adverse policies from the United Kingdom Labour Government. Has the Scottish Government had the chance to assess the impact of the increase in employer national insurance contributions on employers in Scotland—a tax on Scottish businesses—and if so, what are its findings?

Photo of John Swinney John Swinney Scottish National Party

That is a serious issue, because the increase in employer national insurance contributions has reduced competitiveness and opportunities for growth in the Scottish economy. The Government’s analysis shows that the changes could cost employers in Scotland more than £1.7 billion, and the cost to public services is of the order of more than £500 million. That indicates that a significant burden is being carried by business in Scotland, which, as a consequence, is an inhibitor of growth. It is beyond me why a Government that apparently supports economic growth is taking such a measure. It is another example of why we should take decisions here in Scotland on our behalf that are in the interests of the Scottish people and the Scottish economy.

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