FORBES BLASTS LACK OF CLARITY IN NI HIKE
SCOTLAND’S Finance Secretary has hit out at the “lack of clarity” over the national insurance hike in the UK.
MPs backed a rise to national insurance contributions of 1.25 per cent to help fund social care. The devolved administrations were also promised a share of the levy, with Scotland due £1.1billion.
Kate Forbes wrote to Chief Secretary to the Treasury, Steve Barclay, saying: “The levy has significant implications for employees and employers in Scotland, funding for devolved public services and the operation of the public finances at UK and devolved level.
“The lack of any prior engagement with the Scottish Government or, I understand, the other devolved administrations, is regrettable. This has been compounded by the disorderly manner in which the announcement has been communicated and explained.
“In particular, there have been mixed messages about the interaction between the general administration of NIC revenues, the hypothecation of a proportion of NIC revenues to provide funding for health and social care, and the relationship with the Barnett formula.
“There have also been unhelpful assertions about the impact of the announcement on the competence that Scottish Ministers and the Scottish Parliament rightly hold over decisions relating to funding for devolved public services.
“This has resulted in a complete lack of clarity about the actual impact of the announcement on devolved budgets.”