Renfrewshire South MSP Tom Arthur has slammed the UK Government for giving tax breaks to “rich pals” whilst raising National Insurance payments made by “hard-working families.”

The SNP man described the decision to impose a hike in National Insurance (NI), which will mean less income for 117,000 workers in Renfrewshire, as “inexplicable.”

He also criticised UK Chancellor Rishi Sunak for announcing a cut in the tax surcharge for banks by more than 60 per cent.

Mr Arthur said: “It should be a surprise to no-one that the Tories are giving tax breaks to their rich pals in the banks whilst hiking taxes for hard-working families in Renfrewshire South.

“This is inexplicable given that families are facing a cost of living crisis, with increasing food bills, energy prices skyrocketing and cuts to Universal Credit.

“The Tories are making it clear that our recovery from the pandemic will be built on the backs of those that can least afford it.”

Workers, employers and the self-employed will all pay 1.25p more in the pound as NI contributions from April next year.

Employees pay NI on their wages, while employers pay extra NI contributions for staff and the self-employed pay NI on their profits.

From April 2023, NI will return to its current rate but an extra tax will be collected as a new Health and Social Care Levy.

This levy, unlike NI, will also be paid by state pensioners who are still working.
The increase means a worker who earns £20,000 per year will pay an extra £130.

A spokesperson for HM Treasury said: “We are supporting people with the cost of living, including through a new £500million support fund to help vulnerable households, the energy price cap and support with energy bills through the winter.

“Our Plan for Jobs is also helping people across the country to find great work and progress in their careers.

“We have also taken decisive and historic action to fix the social care crisis that governments have ducked for decades.

“The Health and Social Care Levy will make substantial new funding available for the NHS and social care in Scotland.

“Everyone is being asked to contribute, including businesses, in a fair and progressive way.

“We’ve supported social care workers throughout the pandemic, with the lowest paid benefitting from our increase to the National Living Wage.”