Finance

– Scottish Parliament written question – answered on 26th August 2010.

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Photo of Joe FitzPatrick Joe FitzPatrick Scottish National Party

Question S3W-35586

To ask the Scottish Executive what the cost of the Chancellor of the Exchequer’s decision to continue with the increase in employers’ national insurance contributions (NIC) by 0.5% from 2011 will be to (a) each NHS board, (b) each local authority and (c) the remainder of the Scottish block grant in each year from 2011-12.

Photo of John Swinney John Swinney Scottish National Party

The calculation of the impact of the 1% employers NIC increase across the whole public sector is a complex one and unfortunately we cannot split the cost of the NIC increase down to each local authority and NHS board as the basis of our calculation has been on the staffing levels across individual sectors. Our current best estimate is that the 1% increase in NIC will cost the Scottish Government around £50 million a year from 2011-12 after taking account of the increase in the NIC threshold.

Therefore the estimated additional costs for each sector across the Scottish public sector are in the order of £18 million for NHS, £26 million for local government, £5 million for the police and fire services and £0.5 million for the Scottish Government Administration Budget.

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