Carmichael votes to block National Insurance tax hike

Orkney and Shetland MP, Alistair Carmichael, has voted to block the government’s planned National Insurance Contributions increase for employers, after concerns about the impact on small businesses, GPs, dentists and care providers.

A vote to reject the bill implementing the tax rise was defeated by the government yesterday evening [Tuesday] on a margin of 332 to 189.

Speaking after the vote, Mr Carmichael said:

“I am disappointed that the government will not listen to valid concerns about these tax hikes. These decisions on National Insurance risk harming small businesses and putting further pressure on vital health and care services.

“All across the isles I am hearing concerns from local tourism, hospitality and other businesses which are going to be hard hit as a result of the National Insurance increase. Even if they do not shut up shop entirely, their growth and their ability to provide jobs for islanders are going to be constrained by the tax hike. That is bad for everyone, whether employers, employees, or – ultimately – the government.

“I am also concerned about the lack of progress over offset funding for health and social care providers. The government has said they are reviewing options but GPs and other care providers are making cutbacks now because of the uncertainty they face. That will inevitably have an effect on the health services on which we all rely. 

“The Government must change course. We need to give greater support to GPs and care providers – and smaller businesses in general – if we are going to have both the resilient services and the growing economy that we need.”