Properly funding public services and restoring economic stability requires difficult decisions on tax, which is why we are asking employers to contribute more. Stabilising the public finances is the only way to create the long-term stability in which businesses can thrive. The Government recognise the need to protect the smallest businesses, which is why we have more than doubled the employment allowance to £10,500, meaning that more than half of small businesses will either gain or be unaffected.
A constituent has told me about one of their clients, which is a care home owner that is facing an increase in operating costs of £70,000 a year as a result of the national insurance contributions increase. Most of the business’s caring staff work part time, which suits their family circumstances. However, for each part-time member of staff, the business must pay an additional £615 a year as a result of the change to the national insurance contributions threshold in the Government’s October Budget. In Mid Dunbartonshire, and across the UK, there is growing demand for social care. What will the Government do to help businesses in the care sector that have been hit by these increased staffing costs at a time of significant rises?
I am sure that the hon. Member, and Members across the House, will join me in paying tribute to Scotland’s social care workers for the incredible contribution they make. Social care is of course a devolved matter. The Scottish Government have now received the largest budget settlement in the whole history of devolution, as well as support for additional employer national insurance costs. The Scottish Government can choose to deliver that additional support for social care, and I very much hope that they do so.
The impact of net changes in the Budget is £5.2 billion more for Scotland. That is record funding to invest in our NHS, protect the successes of devolution and fix our local services, but the Scottish Government have squandered the latter opportunity by continuing to underfund our councils, leaving Falkirk council with a £28 million hole to plug after eight years of SNP control. Does the Minister agree that the £5.2 billion secured for Scotland by the Labour Government could have been used to fix local government, but instead the SNP has chosen to leave the people of Falkirk to pick up the bill?
Not only do I agree with my hon. Friend that the SNP Government are at risk of squandering this historic opportunity for Scotland, but I stress that the SNP Government might like to ask their Members of Parliament why they voted against this historic Budget in Scotland’s interests.