• About
    • Ethics policy
    • Privacy Policy
    • Ownership, funding and corrections
    • Complaints procedure
    • Terms & Conditions
  • Contact
  • Support
  • Newsletter
Brighton and Hove News
27 March, 2026
  • News
    • Politics
    • Business
    • Opinion
    • Community
  • Arts and Culture
    • Music
    • Theatre
    • Food and Drink
  • Sport
    • Brighton and Hove Albion
    • Cricket
  • Newsletter
  • Public notices
  • Advertise
No Result
View All Result
  • News
    • Politics
    • Business
    • Opinion
    • Community
  • Arts and Culture
    • Music
    • Theatre
    • Food and Drink
  • Sport
    • Brighton and Hove Albion
    • Cricket
  • Newsletter
  • Public notices
  • Advertise
No Result
View All Result
Brighton and Hove News
No Result
View All Result
Home Brighton

National insurance rise adds to strain on school and council budgets

Increase expected to cost millions of pounds a year, says finance chief

by Sarah Booker-Lewis - local democracy reporter
Tuesday 21 Jan, 2025 at 8:41PM
A A
4
Council charges could soar as city faces budget ‘crunch point’

Hove Town Hall - Picture by N Chadwick from www.geograph.org.uk

The council looks like being millions of pounds worse off because of the increase in employer national insurance contributions from April.

Councils were expecting to be no worse off as a result of the rise from 13.8 per cent to 15 per cent – announced in the budget in the autumn.

The threshold is also being cut so that employers will have to start paying national insurance at the higher rate on annual wages of more than £5,000 rather than £9,100.

The rise was forecast to add at least £4 million a year to Brighton and Hove City Council’s “general fund” wage bill from April, with the government providing funding to help cushion the rise.

But Brighton and Hove City Council’s finance chief Nigel Manvell said that support provided by the government would cover only about 60 per cent of the £4 million increase in employer contributions.

And once contractors and suppliers were taken into account, this would put even more pressure on the council’s finances.

The issue arose at a meeting of the Brighton and Hove Schools Forum as the council’s chief finance officer Nigel Manvell briefed heads, governors and other senior officials.

Mr Manvell said that the increase in employer national insurance contributions may not be factored into next year’s budgets, with the position for schools currently unclear.

Aaron Barnard, from the Aldridge Education Trust, which runs two secondaries in Brighton and Hove, had asked about the effect of the national insurance rise on school budgets.

Mr Barnard said that a catering contractor had already written to the trust that runs BACA and PACA to say that it would be affected by increases in the national minimum wage and employer national insurance.

He acknowledged a “loose commitment” from the Department for Education to fund the increase from 13.8 per cent to 15 per cent.

But he added: “There are going to be so many knock-on additions for contractors and services which I don’t think have been considered for the impact on school budgets.”

The council had a £243 million budget for schools and education in the current financial year, with most of it funded by the dedicated schools grant of £205 million from the government.

Mr Manvell said: “The one that worries me the most is for adult social care providers because it’s not just national insurance. The national living wage has gone up by 6.7 per cent and we are national living wage payers primarily.

“We will have to work really hard on that. They are able to balance their costs with self-funding residents in homes but other suppliers do not have that choice.”

Mr Manvell said that the increasing cost of adult social care was one of the biggest challenges for the council’s budget, with an £8.7 million pressure on spending predicted for the 2025-26 financial year.

In the current financial year, the council budgeted to spend £189 million on adult social care.

Details of the council’s budget for the coming financial year are due to be published next week before they are considered at two scrutiny committee meetings on Friday 7 February.

Support quality, independent, local journalism that matters. Donate here.
ShareTweetShareSendSendShare

Comments 4

  1. SammyC says:
    1 year ago

    The worst part about the Chancellor raising employeer NI and lowering the threshold above which it is paid is that local govenment, charities, schools, healthcare providers, retailers, hospitality et.c. etc. etc. will all have vastly increased overheads that will result in service reduction or increased prices. The general public are losers on both counts. Short-sighted and ill-conceived…. will come back to haunt the government.

    Reply
  2. Cathy B says:
    1 year ago

    Councillors seem pretty silent on the extra financial pressures created by their own Government.

    From the info officers have disclosed the NI hike alone will cost the council in excess of £1.6 million. I’m so bored of them finger pointing in other directions all the time and wish they would just be more open and honest that their Labour Government and some of the policy decisions they are taking, puts more financial pressure on councils. With their fingers in their ears on this then it feels like they are just trying to hoodwink residents about the reasons for budget shortfalls and pressures.

    Reply
  3. MikeyMike says:
    1 year ago

    Bella, just ask your buddy Farmer Harmer Starmer for more moolah in this direction. Simples.

    Reply
  4. John Donne says:
    1 year ago

    Never trust new Labour

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Most read

Bus fare caps to end next month

Deliveroo’s dark kitchen set to be demolished

Peacehaven and Falmer look likely to join Brighton as council shake up edges closer

Farage concedes Reform won’t win in Brighton

Police told owner his bar would be too close to focal point for crime

Seafront could be spectacular, says council regeneration chief

National insurance rise adds to strain on school and council budgets

Brighton man faces court charged with raping a child

Brighton & Hove Pride announces full 2026 line-up

Woman starts petition to tackle dog fouling

Newsletter

Arts and Culture

  • All
  • Music
  • Theatre
  • Food and Drink
Brighton Psych Fest reveal second wave of artists

Brighton Psych Fest reveal second wave of artists

27 March 2026
Spring into Beaujolais

Spring into Beaujolais

26 March 2026
Dexys Midnight Runners announce Brighton date

Dexys Midnight Runners announce Brighton date

26 March 2026
Brighton’s ‘Homegrown Festival’ announces full line-up

Brighton’s ‘Homegrown Festival’ announces full line-up

26 March 2026
Load More

Sport

  • All
  • Brighton and Hove Albion
  • Cricket
Welbeck double sinks Liverpool at Brighton and Hove Albion

Welbeck focused on Brighton and Hove Albion after England snub

by Frank le Duc
22 March 2026
0

After another match-winning performance and more talk of an international recall, Danny Welbeck insists that he is fully focused on...

Welbeck double sinks Liverpool at Brighton and Hove Albion

Welbeck double sinks Liverpool at Brighton and Hove Albion

by Ed Elliot - PA
21 March 2026
0

Brighton and Hove Albion 2 Liverpool 1 Danny Welbeck struck twice as Liverpool’s hopes of Champions League qualification were dealt...

Kick-off delayed at Brighton and Hove Albion after A27 crash

Kick-off delayed at Brighton and Hove Albion after A27 crash

by Frank le Duc
21 March 2026
0

Kick-off has been delayed at the Amex Stadium in Falmer as Brighton and Hove Albion host Premier League champions Liverpool....

Brighton & Hove Albion penalty king signs new deal

Surprise England call up for Brighton and Hove Albion veteran

by Frank le Duc
20 March 2026
0

A veteran Brighton and Hove Albion player has received a surprise call up to the England squad for the friendlies...

Load More
January 2025
M T W T F S S
 12345
6789101112
13141516171819
20212223242526
2728293031  
« Dec   Feb »

RSS From Sussex News

  • Brighton & Hove Pride announces full 2026 line-up 26 March 2026
  • ‘Monster’ given 21-year sentence for grooming and raping young child 24 March 2026
  • Sussex Police officer charged with child sex offences and perverting justice 24 March 2026
  • Four go on trial charged with throwing drugs and phone into prison 23 March 2026
  • Asda van joyrider jailed for two years 23 March 2026
ADVERTISEMENT
  • About
  • Contact
  • Support
  • Newsletter
  • Privacy
  • Complaints
  • Ownership, funding and corrections
  • Ethics
  • T&C

© 2023 Brighton and Hove News

No Result
View All Result
  • News
    • Opinion
  • Arts and Culture
    • Music
    • Theatre
  • Sport
    • Cricket
  • Newsletter
  • Public notices
  • Advertise
  • About
  • Contact

© 2023 Brighton and Hove News