Brian Goodall fears impact of national insurance rise

That's according to an SNP councillor who said Labour chancellor Rachel Reeves' decision to increase national insurance contributions for employers may lead to a rent rise to cover increased costs.

The move will land the council with an extra £15 million to pay and the "adverse impact" on the Housing Revenue Account - which is funded by tenants - will be around £500,000.

At the cabinet committee last week Cllr Brian Goodall, the SNP's housing spokesperson, said: "We've obviously had the UK Government's budget and I'm very concerned about the impact of the increase in national insurance for employers that will fall on the HRA.

Rosyth councillor Brian Goodall, the SNP housing spokesperson. (Image: Newsquest) READ MORE: Housing plan rejected as more than 1,400 applicants wait for home in West Fife

"Other areas may find they have their budgets increased to address that in the public sector, but for the HRA that's not an option.

"I've been calling this the tenant tax as I'm really worried the burden will fall on tenants in future years."

From April 2025, employers will have to pay national insurance at 15 per cent on salaries above £5,000, instead of 13.8 per cent on salaries above £9,100 currently.

Ms Reeves said such moves were necessary due to the £22 billion 'black hole' in the public finances and the "mess that the previous (Tory) government had left for us".

Eileen Rowand, the executive director for finance and corporate services at the council, told the committee: "On national insurance we anticipate that increase will cost us roughly £15m as a council and that includes the HRA.

"I've not got the details for the HRA in front of me but I think it's roughly £500,000.

"That will be a pressure on the HRA and we'll need to consider how we deal with that as a council.

"It is obviously funded by tenants so that will have an adverse impact and we need to look at how we deal with that."

The bulk of income to the HRA in Fife is derived from rents from tenants, and this must be sufficient to cover the expenditure on the council's housing stock, which includes repairs and maintenance, supervision and management.