Content

The
Council voted (6 voting in favour, 17 voting against, 1 abstaining
from voting) on an amendment submitted by Councillor Cone, which
was defeated.
 
The
Council (unanimously) agreed the following motion:
 
“Council notes:

-      
That the Government, as part of the Autumn Budget
2024, announced changes to Employers National Insurance
contributions (NICs), to be introduced in April 2025.

-      
From April Employer’s NICs will increase by
1.2% and the threshold at which employers must contribute to
National Insurance will be reduced to all employees earning
£5000 or more.

-      
This will have the effect of increasing the
Council’s NICs by £376,000 (£332,000 on the
General Fund and £44,000 on the HRA).

-      
Principal Authorities will be compensated for
revenue lost as a result of this, but the Local Government
Financial Settlement has demonstrated that this compensation will
not be sufficient to make up for the NICs increase. The total
compensation for the Council will be £220,000.
 
Council
notes with concern:

-      
Despite the financial prudence of the Council, an
additional £156,000 of South Cambridgeshire tax-payers money
will have to be spent on employers’ NICs as a direct result
of the Labour Governments decision not to fully compensate
Principal Authorities for this change.

-      
This figure represents only the impact of the NICs
increase on staff directly employed by this Council and does not
account for the impact of the change on those employed by
contractors or by other precepting authorities, such as the County
Council, the Combined Authority or Town and Parish
Councils.
 
Council
believes:

-      
The Labour Government is jeopardising front-line
public services across the country by not properly compensating
local authorities for their tax increase.

-      
The Local Government sector is already under
significant financial strain due to years of Conservative
Government underfunding and cuts, coupled with an increased demand
for key services. The failure to fully compensate for these changes
only exacerbates the existing funding crisis and further strains
key local services.  

-      
Public services, including those delivered by the
local government sector and elsewhere, should be insulated from
Labour’s tax rise.
 
Council
therefore calls for:

-      
The Leader to write to the Secretary of State for
Housing, Communities and Local Government, and to the Chancellor of
the Exchequer, outlining the deep concerns we have as a Council
about these changes and to implore the Government to provide full
compensation to local authorities.”