NALC Update On Employer National Insurance Contributions

NALC have today issued an update on their important lobbying work on behalf of the sector. The update from the NALC CEO is copied below:

NALC's chair, Cllr Keith Stevens, has written to the Chancellor of the Exchequer, Rachel Reeves MP, about the recent Budget, where he calls for compensation for the increase in National Insurance contributions (NICs) and more engagement with the sector to ensure government policies align with local needs. In summary, Keith's letter congratulates the Chancellor on her first budget, highlights the vital role of parish and town councils in supporting communities, and raises concerns over the planned rise in employer NICs.

The letter sets out how this would unfairly burden parish and town councils and increase their share of council tax. As we support devolution, our letter emphasises the need for parish and town councils to be empowered and involved in decision-making. Further priorities addressed include the rural economy, housing, and planning, reflecting the motion approved by our recent Annual General Meeting. We've also been briefing MPs and Peers on the Budget and NICs. Ahead of a debate on the Budget in the House of Lords, we sent a briefing to Peers, and it was good to see the impact of NICs get raised several times. You can read the full transcript of the debate on Hansard.

I am pleased to see the new MP for Truro and Falmouth, Jayne Kirkham MP (who is also a Falmouth town councillor), use her speech on the Budget to highlight that many parish and town councils "have taken on so many of the services of which the unitary authorities have divested themselves, and as a consequence are often large employers with big budgets". We will continue to brief MPs on the Budget ahead of the second reading of the Finance Bill in the House of Commons on 27 November 2024.