news
National Insurance Funding Won't Cover Costs For Councils, Says COSLA
  • Twitter icon
  • Facebook icon
  • Send an email

National Insurance Funding Won't Cover Costs For Councils, Says COSLA

COSLA is clear that the proposed funding from Scottish Government won't cover additional Employers National Insurance costs, and councils still face an extremely challenging financial position as they set their budgets.

COSLA Resources Spokesperson, Councillor Katie Hagmann, commented:

"We note that the Scottish Government has announced it will fund £144m of the additional direct staffing costs that will result from the UK Government's policy decision rise to Employers National Insurance. However, this leaves  a gap of £96 million Councils will still need to fill within their budgets.

“While we acknowledge that the UK government is still to announce additional resources, it is important to note that there has been no additional funding for commissioned services, the biggest of these being adult social care, which are also vital services and will see significant impacts.

“Given the mounting challenges for local government, this additional funding will not solve the crises councils and communities are facing, which are exacerbated by the Employers National Insurance increase. Difficult decisions will still need to be made as councils look to protect essential frontline services. ” [ENDS]

Further information / notes for editors

  • The estimated remaining pressure for Local Government direct staff is £96m (equivalent to 3.3% council tax increase).
  • Adult social care faces alone faces £85m of funding pressure (equivalent to a 3% council tax increase), risking vital services many in our communities rely upon.
  • The 'full' funding gap from the additional pressure of NI rises on the direct staffing costs for councils plus commissioned services and ALEOs is estimated at £236m. This would equate to an 8.2% increase in council tax before all other inflationary, pay, demand pressures and pre-existing budget gap are considered.
  • Following this year’s Scottish budget COSLA issued a ‘Budget Reality’ document detailing budget concerns for councils. This can be read here.
  • Information about COSLA’s pre-budget lobbying materials detailing the position / concerns of councils ahead of the budget can be read here.