The recent announcement of changes has caused unrest within the seafood sector, with industry organisations such as the Scottish Seafood Association (SSA) and the Scottish Pelagic Processors’ Association (SPPA) claiming the budget changes threaten economic growth.
“The proposed increases in National Insurance are expected to place an undue financial burden on employers, which could lead to difficult decisions regarding future staffing and investment. Seafood businesses who were hailed as key to food security during the pandemic are facing numerous challenges as they work to stabilise and grow in a post-pandemic environment. The additional strain from proposed higher National Insurance contributions may force many businesses to consider layoffs or reductions in workforce hours,” stated a joint statement from the SSA and SPPA.
The industry organisations have also expressed concern over alterations made to inheritance tax, claiming that the changes increase the tax burden on families and businesses, thereby limiting the potential for reinvestment into the economy.
“We urge the government to reconsider these budget changes and engage in meaningful dialogue with the business community. A collaborative approach is necessary to ensure that policies support growth, job creation, and economic stability,” concluded the statement.
