National Insurance and £3 bus fares: Conservative councillors call for U-turn

Councillors in Wakefield are to consider motions to call on the government to reverse “unpopular” Budget plans to increase employer National Insurance contributions and hike the bus fare cap to £3.

Members of the Labour-run authority will vote on two proposals put forward by Conservative councillors at a meeting on November 27.

One, put forward by Ossett councillor Nick Farmer, calls for the council to write to chancellor Rachel Reeves urging her to scrap the rise in employer National Insurance contributions.

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Ms Reeves described the increase as “difficult”, but said it was the right choice in order to fund public services when she announced the plan last month.

Wakefield One, Wakefield Council's headquarters building.Wakefield One, Wakefield Council's headquarters building.
Wakefield One, Wakefield Council's headquarters building.

Coun Farmer said the measure will have “catastrophic implications for the Wakefield district, its residents and businesses.”

His motion states: “The rise in employer National Insurance contributions has been widely condemned by many businesses, including GP’s, who argue it could hit services for patients.”

The Institute of General Practice Management, which represents GP practice managers, has estimated the rise will put up the tax bill of the average surgery by around £20,000 a year.

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Coun Farmer said the rise would also be “devastating” for care homes across the district, as well as the charity and voluntary sectors.

The motion also states: “The National Council for Voluntary Organisations, which represents the UK’s charities and voluntary sector, has estimated the additional costs to the sector to be around £1.4b a year and that the decision to not create an exemption will be another major strain on their limited resources at time when they are already struggling.”

Conservative and Independent group leader Nadeem Ahmed has tabled a motion calling on the council to write to transport secretary Louise Haigh to express “dismay” at the decision to put up bus fares.

Nationally, in last month’s Budget, Labour said the single bus fare cap would rise to £3 next year.

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The single bus fare cap in West Yorkshire could rise by 50p to £2.50 next March, under plans unveiled by the region’s mayor Tracy Brabin.

Coun Ahmed’s motion states: “Due to the Labour government increasing the cap by 50%, from £2 to £3, a commuter commuting on a bus five days a week will suffer a yearly fare increase of several hundred pounds.

The opposition leader also said the decision will result in declining passenger numbers and have a negative impact on young people travelling to access education.

The motion adds: “The increase in the bus fare cap will have a negative impact on elderly people who do not drive but need to access services, healthcare and visit family.”

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