National Insurance: Labour should be taxing wealthy not cutting services
Unless Labour’s increase on Employer National Insurance Contributions is funded it could have a devastating impact on Scotland’s services, says Scottish Green co-leader Lorna Slater.
Ms Slater, who was speaking ahead of a Scottish Government debate on the increase, has urged the UK government to introduce a wealth tax which would raise far more funding while ensuring it is the best-off that are paying the most rather than causing anxiety and possibly cuts by implementing a tax increase on service providers.
Ms Slater said:
“Without full funding, this increase could do a lot of damage to vital services like health and social care as well as punishing small businesses and charities.
“There is more than enough money to ensure that services are fully funded and that everyone can have security and a good standard of living, but so much of it is being hoarded by a small number of very wealthy people.
“Labour has refused to provide clarity about how it will offset the costs it is choosing to inflict.
“It’s a cowardly move which has been done to avoid raising taxes on the richest people, including the ones who bankroll the Labour Party.
“Rather than saddling overstretched service providers with anxiety and extra costs, the Prime Minister and his chancellor should be asking the super wealthy to pay their fair share.”
Analysis from the University of Greenwich shows that a wealth tax starting at a marginal rate of 1%, rising to 5% for those with £5.7 million and above (the richest 0.5%), and 10% for those with £18.2 million (the richest 0.15%) would raise over £70 billion a year.