Jamie Hepburn, SNP MSP for Central Scotland, has expressed his concern about the impact of the UK Government’s decision to increase employers contributions to National Insurance by 1% from 1st April 2011, as the Scottish Government revealed the move is set to cost Scotland £104 million from 2011 to 2012.

The decision by Chancellor Alistair Darling is set to cost Falkirk Council £1.6 million and NHS Forth Valley £1.4 million, with North Lanarkshire Council facing costs of £3.6 million and NHS Lanarkshire £2.6 million as the organisations meet the cost of paying extra National Insurance for their employees.

Commenting, Jamie Hepburn MSP said:

“Labour’s decision to increase national insurance to pay for their recession is going to have a direct effect on frontline services in the Falkirk and Forth Valley area.

“The UK Government is making the wrong choice by wanting to claw back £3.6million from the Council and £1.4million from NHS Forth Valley, at a time when budgets are already tight.  More money spent paying extra NI means less money available for schools, hospitals, staff and facilities.

“Local people will be angry that at a time of extra pressures on our front line services, the Chancellor is increasing the tax burden rather than supporting individuals and families.

“If Alistair Darling wants to save money he should be looking at scrapping Trident, which should save £100 billion, rather taking money from services in the Falkirk area.”