Council Leader and local MP meet with local employers
Council Leader Councillor Kelly Parry and Kirsty McNeill MP met with Midlothian businesses and key service providers to discuss the impact of the upcoming changes to employers’ National Insurance contributions.
First roundtable
Cllr Parry said the first roundtable hosted jointly by herself as leader of the council’s SNP administration and the local Labour MP was a non-political opportunity to understand the pressures faced by local employers when the rise comes into effect from 6 April.
Gain understanding
Cllr Parry said: “Sixty per cent of the council’s National Insurance increase will be funded but it is not the same for providers of services we commission or businesses.
Take away actions
“That’s why we wanted to get representatives from the third sector, industries and partner providers round the table to hear first-hand what they are facing and hopefully take away some actions for Kirsty and me to implement.”
6 April
From 6 April, the National Insurance contribution rate for employers will increase from 13.8% to 15%, with the threshold for this new rate dropping from £9,100 to £5,000 of an employee's salary. The increase in the employment allowance from £5,000 to £10,000 means 865,000 employers will pay no national insurance contributions at all, and more than half of employers will either gain or see no change from this measure.
Big turnout
Among the 18 people at the meeting at the Midlothian Voluntary Action offices in Dalkeith on Friday 21 March, was the Chief Executive of Midlothian Sure Start, Cheryl Brown. Ms Brown said Midlothian Sure Start, which runs six family learning centres, supports 760 families, mostly with children under the age of five and many of whom are in poverty.
Increase in running costs
With 80 staff in the organisation, it is looking at a steep increase in running costs as the result of the new eNIC measures, along with a rise in the living wage and sick and maternity pay.
Staff pressure
Manager of Dalkeith Citizens Advice Bureau Julie Podet said the NI rise would not only impact her costs but increase pressure on her staff.
More enquiries
She said: “Businesses are panicking, they are making cuts. The fourth biggest enquiry we deal with is unemployment, so this rise is going to affect people who have probably never relied on benefits before. They don’t know how to navigate the system, which ultimately, in turn will then put pressure on the council.”
Support for businesses
Businessman David Peters of Saltire Hospitality said “2025 is all about survival”. He said the business were supported during Covid but pointed out that Scottish businesses have not benefited from the same rates relief as those down south. The added costs of paying higher NI contributions is “like a death knell”, he added.
Extended thanks
Cllr Parry and Ms McNeill thanked everyone who came along, including Ricky Ray of Neil Williams Haulage Group, Richard Harris of The Original Rosslyn Inn, Lesley Kelly of Midlothian Third Sector Interface, Chief Executive of Midlothian Council Dr Grace Vickers and Sharon Hill of Mayfield and Easthouses Development Trust.
Fruitful discussions
Cllr Parry said: “I felt it was fruitful and there is a real appetite to repeat these roundtable discussions to cover other topics. Even today we touched upon pain points such as a lack of a taxi service in places like Roslin, something we are already trying to address. There is benefit in making this a regular event.”
Valuable meeting
Ms McNeill agreed. She told those at the meeting that “The changes we have made to employer National Insurance will raise more than £25 billion for investment in public services which will ultimately benefit everyone, so the changes are not going to be reversed. That said it is really valuable to hear from people directly and have the chance to generate some concrete, positive actions we can take together”.
Takeaway tasks
Actions from the meeting include working with Lesley Kelly to come up with a bespoke solution to address job losses for skilled people in the third sector.