From this month, the Chancellor of the Exchequer, Rachel Reeve’s disastrous decision to increase employer National Insurance contributions will come into force.
The Cabinet Secretary for Finance and Welsh Language in the Welsh Parliament, Mark Drakeford MS, has noted that this decision will leave Wales £65 million short of the money needed to compensate the public sector, let alone the third and private sector.
This follows concerns about Wales’ underfunding that Janet Finch-Saunders, the Member of Welsh Parliament for Aberconwy, raised in the Welsh Parliament chamber on Wednesday.
Janet highlighted the Holtham Commission’s findings, which showed that under the current funding model, Wales could be underfunded by £300 million per year.
Commenting on the cost to Wales, Janet said:
“This continued potential for Wales to be underfunded is unacceptable.
“The additional costs facing the private and third sectors from the increase in employer’s National Insurance contributions will have a detrimental impact on Welsh businesses and Welsh jobs, who will now how to face the financial burdens of the Chancellor’s choices.
“While there have been moves to help protect the public sector, it appears that the money is not enough, so how is the £65m black hole going to be filled in?
“Local authority budgets have already been set for the financial year, and we rate payers are facing an increased council tax rate of over 7% on average across Wales, so we cannot be asked to pay more. The money will have to come from the Chancellor!”
ENDS
Photo: Janet Finch-Saunders MS/AS