The Government’s decision to increase employers’ National Insurance contributions by 0.5% from April 2011 will cost Bradford Council at least £1.5 million a year, its Conservative Leader has revealed.
Cllr Kris Hopkins added that the increase in petrol duty – also announced by the Chancellor in yesterday’s Pre-Budget Report – will lead to much higher fuel bills for the local authority.
“In deciding to increase National Insurance contributions for both employees and employers, Alistair Darling has effectively driven a coach and horses through the budgets of every business and public authority in the country, and raided the personal finances of every worker,” he said.
“£1.5 million is the equivalent of an extra 1% on Council Tax in Bradford district and is therefore a very significant amount of money for us.
“This leaves us with two choices: do we pass on the bill to local residents or do we make cuts to front line services? It has to be one or the other.
“And every private and public sector body with paid employees will have to make cut backs of their own.
“Staff, who face their own 0.5% rise in National Insurance contributions, will also be hit very hard in the pocket. For example, Bradford Council employees will collectively have to fork out an additional £1.5 million every year.
“The decision to increase petrol duty will also significantly add to our fuel bills which, again, will have to be paid for out of our main budget. And local people who have no option but to drive to work will have to pay more.
“The Government’s Pre-Budget Report was supposed to instil greater confidence in all of us but, instead, it has caused great damage to people’s morale and raided the coffers of employers everywhere you look.
“I have no doubt that this is a moment the Labour Government will come to regret.”
