'No more excuses' as UK Treasury to hand Scottish Government £300m to cover National Insurance hike

The UK Treasury is to hand the Scottish Government around £300m to cover the cost of a National Insurance hike on employers. The cash - which will be given by the end of the financial year - will cover public sector employers liable to pay more in NI. The funding will be a boost to SNP ministers ahead of the Scottish Budget statement on December 4.

A UK Government source said there was now "hundreds of millions of pounds" heading to Holyrood. They said: "In total Holyrood will have more than £5bn extra to spend as a result of the UK budget. "There are no more excuses, Scots expect delivery from the SNP and to use this money to reduce NHS waiting times and raise attainment in our schools - not fill in a budget black hole created by years of financial mismanagement and waste.



" Chancellor Rachel Reeves previously announced Scotland would receive £3.4bn in additional funding in 2025-26 when she laid out her Budget plans last month. The UK Government is now providing extra funds on top of the £3.

4bn to make up for the extra staff costs from increased NI costs. The Scottish government is also set to receive an additional £1.5bn for this financial year, 2024-25 - though it said this was in line with its budget expectations.

NI contributions are the UK's second-largest revenue stream behind income tax. It is paid by workers and the self-employed on earnings and profits, and by employers on top of the wages they pay out. About 600,000 people are employed in Scotland’s public sector, making up 22 per cent of the total workforce – compared to about 17 per cent in the UK as a whole.

That has fuelled concerns at Holyrood that Scotland could be short changed if compensation for the National Insurance increase is not proportional to its public sector. A Scottish Government spokesman said: "This UK government policy risks hampering economic growth and damaging public services and while discussions with the Treasury are ongoing, we still do not have certainty ahead of the Scottish budget." To sign up to the Daily Record Politics newsletter, click here.