THE latest UK Labour Government budget was an opportunity to show they understand the economic challenges facing the country.
Yet, once again, I find myself disappointed with another UK Government budget.
One of the most troubling changes for employers in East Lothian and beyond is the increase in National Insurance contributions. At a time when businesses are trying to rebuild and strengthen their workforce, this decision will inevitably add pressure. The effect will be particularly hard on small and medium-sized businesses that already operate on tight margins.
Whilst I appreciate employee National Insurance has not risen, make no mistake, this will still negatively impact employees. With additional costs, many businesses may be forced to make difficult choices, including scaling back hiring or reconsidering pay increases. Ultimately, the knock-on effect on local employment is a concern and I hope the UK Government consider this.
The challenges do not end there. Labour have pitched this budget as a move away from austerity and, of course, investment is welcomed; however, we must not forget Labour’s decision to keep the two-child benefit cap. This one decision continues to push families into hardship. Similarly, maintaining the bedroom tax will mean the Scottish Government finances may be impacted if they continue to mitigate this.
Additionally, the decision to increase tax on whisky sales will directly impact one of our country’s highest exports, eroding our economic strength.
Moreover, the glaring lack of support for the WASPI women remains unaddressed. Those born in the 1950s who have had their pension ages changed with little notice remain ignored by this UK Government. For a Government that claims to represent change, the lack of change on this key justice issue is disappointing to say the least.
After 14 years of the Tories, this budget had the opportunity to improve the lives of Scots; however, it places a disproportionate burden on the very people and industries vital to Scotland’s economy. I hope in the future we can make all our own decisions and not rely on a UK Government to understand the unique Scottish economy.
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