It has emerged that the UK Government is to provide around three hundred million pounds extra to the Scottish Government in the new budget settlement, to help cover the planned increase to Employer National Insurance Contributions.
The BBC are reporting that Treasury officials told their counterparts in Edinburgh last week that they should receive in the range of between £295 and £330 million extra, which officials say would bring more than five billion pounds of additional money to Holyrood.
The employers’ NI increase was hiked in the UK Budget by the Chancellor to boost public service funding. The Scottish Finance Secretary Shona Robison had estimated the cost to be £500m and urged the Treasury for support. Scottish university leaders have also called for help, asking ministers for an extra £49m to cope with the change and avoid colleges and universities closing in 2025-26.
The Scottish Government says whilst discussions are ongoing with the Treasury they still do not have certainty ahead of the Scottish budget.
