NDM8732 Plaid Cymru Debate - Employer national insurance contributions

NDM8732 Heledd Fychan (South Wales Central)

To propose that the Senedd:

1. Notes the UK Government’s decision to increase employer national insurance contributions in the autumn budget.

2. Believes the added cost to public sector employers in Wales should be met in full by the UK Treasury.

3. Notes the OBR’s assessment that the increase in employer national insurance contributions is expected to lead to stalled real wage growth at a time when Welsh employment rates are the lowest in the UK.     

4. Regrets the lack of clarity on whether the reimbursement from the UK Treasury will include, amongst other sectors, university employers, GPs and third sector organisations.

5. Calls on the Welsh Government to:

a) press the UK Treasury for the reimbursement of added national insurance contributions costs in the public sector to be based on the Stats Wales and Labour Force Survey definitions of the public sector workforce, which includes amongst other sectors, university employees, GPs and third sector organisations;   

b) provide a comprehensive analysis of the impact that the rise in employer national insurance contributions will have on the jobs market in Wales; and

c) increase the level of business rates relief in the upcoming Welsh budget to mitigate the impact of national insurance contributions rises within the domestic small medium enterprises sector.  

The following amendments were tabled:

Amendment 1 Jane Hutt (Vale of Glamorgan)

Delete all and replace with:

To propose that the Senedd:

1. Notes:

a) the UK Government’s decision to increase employer national insurance contributions in the autumn budget, in order to assist in stabilising the nation's finances;

b) the OBR’s overall assessment that the net effect of UK Government Budget policies will increase growth in the longer term;

c) the UK Treasury's indication that additional funding will be provided to meet the costs of employer national insurance contributions in the public sector;

d) the UK Treasury's confirmation that, in doing so, it will follow the ONS classification, as adopted by previous governments; and

e) as a result of all the measures in the UK Government Budget, 865,000 UK businesses will pay no national insurance contributions at all, and more than half of employers with national insurance contribution liabilities will either see no change or will gain overall next year.

If amendment 1 is agreed, amendment 2 will be de-selected.

Amendment 2 Darren Millar (Clwyd West)

Add as new point after point 4 and renumber accordingly:

Further regrets that the UK Labour Government has broken a manifesto commitment to not raise tax on working people.