• About
    • Ethics policy
    • Privacy Policy
    • Ownership, funding and corrections
    • Complaints procedure
    • Terms & Conditions
  • Contact
  • Support
  • Newsletter
Brighton and Hove News
22 February, 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 to John Donne 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

Council plans to house more homeless families in council flats

Toilet tax plan to hit those in greatest need, say critics

Parents angry over failings that led to school closure plan

Council plans to close day centre for people with learning disabilities

School building to become temporary charity hub

National insurance rise adds to strain on school and council budgets

Ex-PM sends claims about former prince to Sussex Police

Hospital marks milestone in £62m A&E modernisation

Brighton PC barred from policing for dishonesty

Trial set for Brighton man charged with trying to rape child

Newsletter

Arts and Culture

  • All
  • Music
  • Theatre
  • Food and Drink
Aussie pub-punkers Mini Skirt announce Brighton gig

Aussie pub-punkers Mini Skirt announce Brighton gig

20 February 2026
It’s time to get all Bleary Eyed

It’s time to get all Bleary Eyed

20 February 2026
Brighton Festival at 60

Brighton Festival at 60

19 February 2026
Caroline offer ‘Total Euphoria’ at Chalk

Caroline offer ‘Total Euphoria’ at Chalk

19 February 2026
Load More

Sport

  • All
  • Brighton and Hove Albion
  • Cricket
Brighton and Hove Albion mark Milner’s record with win at Brentford

Brighton and Hove Albion mark Milner’s record with win at Brentford

by George Sessions - PA
21 February 2026
0

Brentford 0 Brighton and Hove Albion 2 Brighton and Hove Albion marked James Milner’s record-breaking 654th Premier League appearance with...

Brighton and Hove Albion to start with four changes at Brentford

Brighton and Hove Albion to start with four changes at Brentford

by Frank le Duc
21 February 2026
0

Brighton and Hove Albion are to start with four changes at Brentford to the side that lost to Liverpool in...

Hürzeler says Brighton and Hove Albion may need to ‘win ugly’

Brighton and Hove Albion boss urges everyone to stay positive

by PA sport staff
21 February 2026
0

Brighton and Hove Albion boss Fabian Hürzeler has urged everyone involved with the club to stay positive despite the side’s...

Manager of Brighton and Hove Albion’s women team dismissed after allegations

Brighton and Hove Albion dumped out of FA Cup by Liverpool

by PA sport staff
14 February 2026
5

Liverpool 3 Brighton and Hove Albion 0 Curtis Jones’s first goal in over a year paved the way for Liverpool...

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

RSS From Sussex News

  • Driver arrested after man dies in crash late last night 21 February 2026
  • Ex-PM sends memo about former prince to Sussex Police 20 February 2026
  • Teenage BMW driver banned – again 19 February 2026
  • Gross misconduct found after police officer deceived vetting 19 February 2026
  • Fatal crash witnesses sought by police 18 February 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