Anas Sarwar defends UK Government decision to make employers pay more NI following business backlash

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Anas Sarwar has defended the UK Government's decision to hike National Insurance contributions from employers amid a backlash from businesses.

The Scottish Labour leader said Rachel Reeves, the Chancellor, had faced "difficult choices on tax" as she tried to fix public finances left in a mess by the Tories.

Sarwar insisted asking employers to pay more National Insurance was a fairer way of raising the revenues required to invest in public services than increasing income tax on workers.

It comes after a prominent Scots businessman and long-term Labour supporter criticised the recent UK Budget as "shocking".

Brian Gilda, owner and founder of the Peoples car dealership group, said small businesses would suffer as a result of the hike in NI.

"It is just a shocking Budget all ways up, just to clamp that on us. A lot of small businesses are going to suffer," he said.

The businessman added: "I think, were they speaking honestly and correctly prior to the election compared with what we got after the election? And that is an uncomfortable feeling. I am just not comfortable in terms of what has gone through from this Budget at all.”

Speaking to the Record while campaigning in Maryhil today, Sarwar said he understood the "frustration" of some businesses following the Budget.

The Scottish Labour leader said he had "immense respect" for Gilda.

"We never pretended it wasn't going to be difficult, or we wouldn't face challenges," Sarwar said

"We had a choice in this Budget. We could have walked past the black hole in the finances, but we chose to confront it.

"We could have chosen to slow roll the capital investment in the country, but we have chosen to make significant increases.

"Were the difficult decisions in the Budget? Absolutely. Rachel Reeves herself would admit she was forced to make decisions she would have otherwise not wanted to make.

"The choice we made was an injection of investment in capital infrastructure and public services, and that meant making difficult choices on tax."

Sarwar added: "I know Brian Gilda and have immense respect for him. I can understand some of the frustration. But what I would say is, if it wasn't the changes that we did, what were the alternatives to raise £40 billion?

"John Swinney has suggested we increase income tax. But I don't think we should have asked working people to pay more during a cost of living crisis. That would have been the wrong approach.

"What I would say to business is, I understand this is a difficult decision. But there has to be broader policy reforms to drive investment in our economy, and I hope they can see the Labour Party is serious about doing that.

"I hope people can look at the decisions of the Budget in the round, and the strategy of government over the next five years."

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