Thank Labour for council tax hike - Angus Robertson

Chancellor of the Exchequer Rachel Reeves

The real reason residents are expected to feel the pinch is the cost of the ill-fated ‘tax on jobs’ – the UK Labour government’s decision to increase Employers’ National Insurance Contributions (eNIC).

As a large employer, this will come at an estimated cost of £19.8m to the City of Edinburgh Council.

Indeed, the cost of Rachel Reeves’ policy to essential council services doesn’t just end with the council itself but will also squeeze finances further by increasing the costs of contracts and commissioned services such as adult social care, as well as the cost to council-owned companies such as Lothian Buses at an additional estimated £16.7m.

With UK Labour failing to fully fund the impact of their policies on their own Edinburgh Labour council administration, a choice has been made to balance the UK budget on the back of essential services that we all rely on.

Unfortunately, it seems that this is a price that will ultimately impact residents' pockets directly this year.