UK Government's plans could have a devastating impact on services, it's claimed

Charities will be among those punished by the forthcoming National Insurance (NI) hike – and the UK Government should impose a wealth tax instead.

Former Scottish Government minister Lorna Slater made the call ahead of a Holyrood debate on the rise, which has caused widespread worry in the country’s voluntary sector.

Slater, a Green MSP, said the NI hike as currently planned could have a devastating impact on Scotland’s services.

She has urged the UK government to introduce a wealth tax which would raise far more funding while ensuring it is the best-off that are paying the most rather than causing anxiety and cuts by implementing a tax increase on service providers.

She said: “Without full funding, this increase could do a lot of damage to vital services like health and social care as well as punishing small businesses and charities.

“There is more than enough money to ensure that services are fully funded and that everyone can have security and a good standard of living, but so much of it is being hoarded by a small number of very wealthy people.

“Labour has refused to provide clarity about how it will offset the costs it is choosing to inflict.

“It’s a cowardly move which has been done to avoid raising taxes on the richest people, including the ones who bankroll the Labour Party.

“Rather than saddling overstretched service providers with anxiety and extra costs, the prime minister and his chancellor should be asking the super wealthy to pay their fair share.”