Public Sector: Lancashire
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of increases in employer National Insurance contributions on public services in (a) Fylde and (b) Lancashire.
Answered by James Murray
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the National Insurance Contributions Bill containing the changes to employer NICs. The TIIN sets out the impact of the policy on the exchequer, the economic impacts of the policy, and the impacts on individuals, businesses, and civil society organisations, as well as an overview of the equality impacts.
The Office for Budget Responsibility also published an Economic and Fiscal Outlook (EFO) in October 2024, which set out the impacts of changes to Employer NICs, including the expected economic and labour market impacts.
The Government is providing support for departments and other public sector employers for additional employer NICs costs only. This funding is being allocated to departments, with the Barnett formula applying in the usual way.
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