The Scottish Seafood Association and the Scottish Pelagic Processors’ Association claim that the increases to National Insurance contributions, coupled with changes to inheritance tax, threaten to undermine the government’s own rhetoric about fostering economic growth across business communities.
‘The proposed increases in National Insurance are expected to place an undue financial burden on employers, which could lead to difficult decisions regarding future staffing and investment. Seafood businesses which were hailed as key to food security during the pandemic are facing numerous challenges as they work to stabilise and grow in a post-pandemic environment. The additional strain from proposed higher National Insurance contributions may force many businesses to consider layoffs or reductions in workforce hours to control costs, ultimately stalling the economic recovery we so desperately need,’ the two organisations state in a joint announcement.
‘Alterations to inheritance tax pose another significant risk. Although primarily focused on agriculture business, this tax is far wider and far reaching in affecting all business. By increasing the tax burden on families and businesses, the government may inadvertently limit the capital available for reinvestment in the economy. This move contradicts the government’s commitment to supporting businesses and promoting growth, as it creates a climate of uncertainty that can stifle innovation and expansion efforts.’
The Scottish Seafood Association and the Scottish Pelagic Processors’ Association are urging the government to reconsider these budget changes and engage in meaningful dialogue with the business community.
‘A collaborative approach is necessary to ensure that policies support growth, job creation, and economic stability,’ they state.
