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The Herald Scotland
23-05-2025
- Business
- The Herald Scotland
Cruise port warns levy could ‘harm Scotland's reputation as tourist destination'
MSPs have passed legislation which allows councils to bring in a visitor levy on overnight stays in places such as hotels, bed and breakfasts and holiday lets – with a number of authorities now looking at introducing such charges. However with the visitor levy not applying to passengers on cruise ships, the Government is consulting on whether a separate charge should be introduced. Port of Cromarty Firth said it has calculated that if a levy of £5 per passenger was introduced, port costs for ships visiting it would be increased by almost a quarter (23%). In these circumstances it said a 10% reduction in cruise ships to the port would be the best case scenario it would expect. The port added that while Highland Council could stand to collect £863,000 if such a charge was introduced, businesses and communities in the area could lose out on £2.4 million of spending by cruise passengers. Alex Campbell, chief executive of Port of Cromarty Firth, said: 'Our figures show that the cruise levy would not benefit the Highlands, but rather the introduction of this additional tax would adversely affect businesses that rely on income from tourism, and damage our communities who already find skilled labour hard to come by. 'The impact would disproportionately fall on smaller businesses and seasonal workers, such as shop owners, tour guides and taxi drivers. 'The cruise industry makes a much-needed multimillion-pound contribution to the Highland economy every year and provides a vital source of income to a wide range of businesses. 'In turn, through the wages of workers and employees and the profits generated by the supply chain that benefits from cruise, it raises tax revenues for Scottish and UK governments. 'The Port of Cromarty Firth does not understand the economic rationale for bringing in a local cruise levy. We believe that, far from benefiting our nation, it will in fact harm the reputation of Scotland as a tourist destination. 'Further, as an additional tax that is difficult to administer and collect, it will only damage relations with cruise operators.' The consolation runs until May 30, with Finance Secretary Shona Robison having already said it will 'help to inform the Scottish Government's decision over whether or not to bring forward legislation'. Speaking at the start of the consultation earlier this year, Ms Robison said ministers had held a series of events to 'hear the views of the cruise ship industry, local government, and others'.
STV News
15-05-2025
- Business
- STV News
Robison calls for more as less than half of NI rise funded
Scotland's Finance Secretary has called for the UK Government to fully cover the impact of the rise in National Insurance contributions, as it was revealed that less than half of the estimated amount will be provided. The Government announced plans to increase employer contributions in October, meaning the public sector will be forced to pay more. While the rise will be fully funded in England, Scotland's larger public sector workforce means the Government will have to pay more per head should it look to mitigate the increase. On Thursday, it was confirmed £339m will be given to the Scottish Government, well short of its estimate of the more than £700m cost to the public purse. Shona Robison, who has been pushing for the increase to be fully funded for the public sector, repeated her calls after the announcement. 'We have been calling for the UK Government to abandon its employer National Insurance rise, which risks damaging the economy by making it harder for businesses to take on or keep staff,' the Finance Secretary said. 'Failing that, we have asked that they fully fund this tax increase to ensure Scotland's NHS, councils and other public services don't lose out on vital revenue. 'As such, it is deeply disappointing that the funding confirmed today falls so far short of the more than £700 million bill we estimate public services face – less than half of the cost of the National Insurance hike.' She added: 'This settlement fails to take account of the fact that we have a larger public sector per person than other parts of the UK. 'It feels like Scotland is now being punished for having decided to employ more people in the public sector and to invest in key public services. 'I would urge UK ministers to reconsider – and not leave Scotland with a bill worth hundreds of millions of pounds.' The Treasury has consistently said that the Scottish Government will receive funding in proportion to the Barnett formula, which calculates settlements to the devolved nations based on population share. The UK Government has been contacted for comment. Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
Yahoo
15-05-2025
- Business
- Yahoo
National Insurance rise compensation 'disappointing'
The Scottish government has said it is "deeply disappointed" by the £339m it is to receive towards the cost of increased National Insurance contributions for public sector employers this year. The figure was confirmed by the Treasury as part of the effort to compensate the public sector for increased staffing costs due to the tax rise. But the Scottish government said the figure fell about £360m short of what is needed because there is a larger public sector workforce here. Finance Secretary Shona Robison said Scotland was being "punished" because more people work in the public sector north of the border. The Treasury has said the amount reflects Scotland's share of the funds being spent across the UK. That is calculated through the Barnett formula, which works out settlements to the devolved nations based on population. Councils facing £100m cost to cover UK tax hike Extra funds to help councils cover tax rise Chancellor Rachel Reeves announced last year that the rate of employer National Insurance contributions was to increase from 13.8% to 15% in April. The threshold at which employers have to start paying the contributions is also being lowered from £9,100 to £5,000. However, Robison argued that the cost to the Scottish public purse would be closer to £700m. She repeated her call for the National Insurance rise to be "abandoned," and said it risked "damaging the economy". The Scottish government said it would provide £144m to cover 60% of the extra costs faced by councils. Local government body Cosla said they would still be left with a £96m to cover the additional 40%. Shona Robison said: "It is deeply disappointing that the funding confirmed today falls so far short of the more than £700m bill we estimate public services face - less than half of the cost of the National Insurance hike. "This settlement fails to take account of the fact that we have a larger public sector per person than other parts of the UK. "It feels like Scotland is now being punished for having decided to employ more people in the public sector and to invest in key public services." The UK government has been contacted for comment.
BBC News
15-05-2025
- Business
- BBC News
Robison: National Insurance rise compensation 'deeply disappointing'
The Scottish government has said it is "deeply disappointed" by the £339m it is to receive towards the cost of increased National Insurance contributions for public sector employers this figure was confirmed by the Treasury as part of the effort to compensate the public sector for increased staffing costs due to the tax the Scottish government said the figure fell about £360m short of what is needed because there is a larger public sector workforce Secretary Shona Robison said Scotland was being "punished" because more people work in the public sector north of the border. The Treasury has said the amount reflects Scotland's share of the funds being spent across the is calculated through the Barnett formula, which works out settlements to the devolved nations based on population. Chancellor Rachel Reeves announced last year that the rate of employer National Insurance contributions was to increase from 13.8% to 15% in threshold at which employers have to start paying the contributions is also being lowered from £9,100 to £5,000. However, Robison argued that the cost to the Scottish public purse would be closer to £ repeated her call for the National Insurance rise to be "abandoned," and said it risked "damaging the economy".The Scottish government said it would provide £144m to cover 60% of the extra costs faced by government body Cosla said they would still be left with a £96m to cover the additional 40%. Shona Robison said: "It is deeply disappointing that the funding confirmed today falls so far short of the more than £700m bill we estimate public services face - less than half of the cost of the National Insurance hike."This settlement fails to take account of the fact that we have a larger public sector per person than other parts of the UK."It feels like Scotland is now being punished for having decided to employ more people in the public sector and to invest in key public services." The UK government has been contacted for comment.
Scotsman
15-05-2025
- Business
- Scotsman
SNP ministers to receive under half the funds to cover National Insurance hike in 'deeply disappointing' hit
The Scottish Government has warned the move linked to the National Insurance hike is 'deeply disappointing'. Sign up to our Politics newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... SNP ministers will receive less than half the funding from Westminster they need to mitigate the impact of the UK government's controversial employer National Insurance hike. Chancellor Rachel Reeves announced in her Autumn Budget that employer National Insurance Contributions (NICs) would rise from 13.8 per cent to 15 per cent, coming into force from April 6, 2025. Advertisement Hide Ad Advertisement Hide Ad The policy has been roundly criticised by businesses and the public sector - amid warnings it could see costs soar and put off firms from hiring more staff. Rachel Reeves and Shona Robison | PA The Scottish Government had been given previous assurances that Labour ministers would cover the costs of the rise in Scotland's public sector, but had yet to have it confirmed. Now, the UK government has confirmed Holyrood will receive just £339 million, despite an estimated bill of more than £700m for public services in Scotland. Advertisement Hide Ad Advertisement Hide Ad SNP Finance Secretary Shona Robison has repeated her calls for the tax increase to be fully funded. She said: 'We have been calling for the UK government to abandon its employer National Insurance rise, which risks damaging the economy by making it harder for businesses to take on or keep staff. READ MORE: Scottish politics has never been more important - get The Steamie newsletter today 'Failing that, we have asked that they fully fund this tax increase to ensure Scotland's NHS, councils and other public services don't lose out on vital revenue.' Advertisement Hide Ad Advertisement Hide Ad She added: 'As such, it is deeply disappointing that the funding confirmed today falls so far short of the more than £700m bill we estimate public services face – less than half of the cost of the National Insurance hike. 'This settlement fails to take account of the fact that we have a larger public sector per person than other parts of the UK. It feels like Scotland is now being punished for having decided to employ more people in the public sector and to invest in key public services. 'I would urge UK ministers to reconsider – and not leave Scotland with a bill worth hundreds of millions of pounds.' Advertisement Hide Ad Advertisement Hide Ad Cosla, the umbrella organisation for local authorities in Scotland, has estimated the UK government policy would cost councils an extra £265m, as well as an additional £85m for adult social care services. In February, Ms Robison offered an extra £144m to local authorities to mitigate the increase in National Insurance contributions and what she said would be a move to 'avoid inflation-busting increases' to council tax. But council tax has risen by the highest amount in a generation in local authorities across Scotland. SNP finance secretary Shona Robison After Ms Robison delivered her draft Budget in December, the Scottish Fiscal Commission warned SNP ministers about the potential impact of the National Insurance increases not being fully funded by the UK government. The commission warned the larger share of spending on public sector wages north of the Border meant that it was unlikely the full costs of covering employer National Insurance increases was expected to be funded - warning it would add to pressure on staff costs within individual parts of the public sector. The organisation warned the Scottish Government to be prepared to manage the risks that its wage bill is likely to be higher than budgeted for.
