Westminster must provide support for National Insurance contribution increases – Archibald
Date published:
Finance Minister, Dr Caoimhe Archibald has written to the Chief Secretary to the Treasury pressing for adequate funding to be provided to offset the impact of increased National Insurance contributions.
Minister Archibald said: “The increased National Insurance contributions will prove incredibly challenging for our local businesses as well as the community and voluntary sector and public sector employers.
“Devolved Governments quite simply do not have the financial capacity to compensate for decisions made on reserved taxation matters.
“The Chancellor has said support will be provided for public sector employers however it is unlikely to be sufficient to meet the increased costs. I have written to the Chief Secretary to the Treasury asking for our costs to be met in full and for support for those outside central government who provide vital public services given the pressures they will face as a result of this policy decision.”
Outlining the impact on the community and voluntary sector, Minister Archibald added: “The Chancellor’s budget is a double blow to the community and voluntary sector which will face increased costs at a time when the British Government are reducing the Shared Prosperity Fund by a third which will have funding implications for this sector.
“I raised this when I met with the Minister of Housing, Communities and Local Government yesterday and urged for reconsideration of this approach.”
Minister Archibald concluded: “My Department has commissioned Ulster University Economic Policy Centre to conduct a focused cost of doing business sectoral study looking at the impact of the National Insurance contributions increases and other factors such as insurance, energy and property costs and the disparities in tax regimes, such as VAT, across Ireland.
“It is important that we hear the voices of those impacted which is why the team will be carrying out a series of sectoral and business representative body consultations to inform the research.”
Terms of Reference for the Cost of Doing Business research have been published on the Department of Finance’s website with the study due to be concluded by the end of March 2025.
Notes to editors:
- Terms of Reference for the Cost of Doing Business research are available at: Cost of Doing Business Research
- Funding for the Shared Prosperity Fund was £67.5 million in 2023/24 and will be £45.5million in 2025/26 transition year. The fund enables the Voluntary and Community sector to deliver Economic Inactivity interventions as well as providing support for local business and other interventions.
- Media enquiries should be addressed to the Department of Finance Press Office on Tel: 028 9081 6724 or email dof.pressoffice@finance-ni.gov.uk.
- To keep up to date with news from the Department you can follow us on the following social media channels:
- X - @dptfinance
- Facebook - @dptfinance
- Instagram- @department_of_finance
- LinkedIn - Department of Finance
- The Executive Information Service operates an out of hours service For Media Enquiries Only between 1800hrs and 0800hrs Monday to Friday and at weekends and public holidays. The duty press officer can be contacted on 028 9037 8110.