RCTC Statement On National Insurance Change

Council Leader Andrew Morgan has described the impact of National Insurance change by the UK Government as a ‘cut by stealth’ for local authorities in Wales. 

 The changes to National Insurance contributions mean Rhondda Cynon Taf Council will need to find nearly £5m in addition to the budget cut the Council faces next year as a result of the UK Government’s Austerity Measures. 

County Borough Councillor, Andrew Morgan, Leader of Rhondda Cynon Taf County Borough Council said: “The UK Government has already slashed public sector funding to Wales and has indicated further cuts as part of the Chancellor’s Comprehensive Spending Review to be announced next month. 

“By not funding the introduction of National Insurance contribution changes, the public sector in Wales is set to receive a further cut by stealth from the UK Government, which will in turn place many Council services in jeopardy.

“A Council the size of Rhondda Cynon Taf will, in effect, have to find £5m more every year from April to employ the same number of staff the Council does currently. 

“Across Wales, this will mean an extra cost to councils of around £60m, showing very clearly the massive impact this further cut by stealth will have upon Council-run Services. 

“This impact on the public sector has received very little attention nationally, yet the consequences it will bring increase the impact of decisions which are being taken the other end of the M4 on frontline public services in Wales. 

“My own Council has already needed to make a number of tough decisions as a result of UK Government austerity, and as a consequence the Council’s workforce has reduced. This cut by stealth is without doubt intended to reduce public services further through the backdoor. 

“The Welsh Government is trying to protect Local Government in Wales as best it can, and likewise in Rhondda Cynon Taf, we are seeking ways to deliver services differently to protect the frontline. 

“But these changes to National Insurance are set to have a major financial impact that will hurt the public services we deliver.”

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