Employers National Insurance increases

At the December Council meeting, councillors discussed the effect of the recent central government budget on Town Council finances.

The biggest changes/tax increases reducing the secondary Class 1 National Insurance (employer) threshold from £9,100 to £5,000 per annum and increasing the main rate of secondary Class 1 NI (employer) C contributions from 13.8% to 15 %. Class 1A and 18 rates which apply to taxable benefits will also increase in line.

Coun Angelique Foster chair of budget committee, commented "These increases will affect the payroll costs of all elements of next years council tax bill - County Council, District Council and Town, together with Fire and Police. Councils must plan for these increases when setting their precepts to avoid future budget gaps. As payroll is the largest cost that faces the Town the Council, this will have a substantial effect on the whole finances of the council. This will result in cuts to services or increases in Council Tax. The Budget Committee will continue to work on this and ensure that the Town Council maintains the highest level of service to the residents of Dronfield."

The changes come into effect in April, 2025.