Parish and Town Councils: Employers' Contributions
The question
To ask the Secretary of State for Housing, Communities and Local Government, what assessment she has made of the potential merits of extending National Insurance Contributions relief to town or parish councils that undertake functions typically carried out by principal authorities.
Answered by Jim McMahon
The government recognises the important role town and parish councils have in improving the quality of life and wellbeing of their communities but has no direct role in funding parish and town councils, and therefore has not provided compensation for the increase in the rate of employer’s National Insurance Contributions, consistent with the approach taken by the previous government.
We recognise that the increase in the rate of employers’ National Insurance Contributions (NICs) will lead to increased costs for some parish councils, which may require them to increase their precept. We recognise that decisions to increase precepts are not taken lightly by parish councils.
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