Avon Fire & Rescue Service faces £400k national insurance bill hike

A Tory councillor has slammed the government for reneging on its pledge to protect Avon Fire Authority (AFA) from a massive hike in employers’ national insurance (NI) contributions. AFA member and Bristol city Cllr Richard Eddy (Conservative, Bishopsworth) said that a promise by Labour to protect public sector organisations from the huge increase in their wage bills has turned out to be a “bare-faced lie”.

He said that only half of the rise in NI contributions, announced by the Chancellor, Rachel Reeves, in the Budget in October, would now be covered by the government, and that for the fire authority, this meant having to find £400,000 of the £800,000 it would cost the fire and rescue service. Employers currently pay 13.8 per cent on salaries above £9,100, but from April this will change to 15 per cent on salaries over £5,000.

It has been estimated that the total tax bill for employers across the country will go up by £13.6billion a year, equal to £900 more towards the cost of every member of staff, based on average earnings. Cllr Eddy said for Avon Fire & Rescue Service, which covers Bristol, South Gloucestershire, North Somerset and Bath & North East Somerset, this would lead to authority members needing to make more than £500,000 in cuts to the 2025/26 budget, which they will set at AFA committee on Friday, February 14.

That is even if a proposed £5 rise in the service’s precept for Band D households – the maximum allowed by the government without the need for a local referendum – is accepted. Cllr Eddy said: “The current Labour government announced in last autumn’s Budget that private sector and not-for-profit enterprises were to be the main victims of its huge hike in employers’ NI, but that they proposed not to extend this tax raid to the public sector.

“Now it emerges that this loudly proclaimed pledge was disingenuous and a bare-faced lie. In fact, bodies such as Avon Fire & Rescue Service will only be reimbursed by the Labour government by 50 per cent of the massive increase in our wage bill.

“Avon Fire & Rescue Service will have its wages bill soar by almost £800,000, but we will only receive back from the government half of this – just shy of £400,000. With other pressures on our budget, officers tell councillors they will have to impose cuts of over £500,000.

“Officers are looking at a range of savings to bridge the shortfall caused by this breach of promise. Members are being told it will almost certainly include the loss of permanent firefighter posts.

“Our residents will understandably be angry and confused that the government’s promises have proved to be hollow and empty and that fire safety and prevention in this area could be imperilled – and lives potentially put at risk – as a result of Labour Chancellor ‘Robber Reeves’ betrayal.” Finance officers are recommending that members approve a £5 council tax increase, taking annual bills from £85.43 to £90.43 from April – about 5.9 per cent.

A report to Friday’s meeting includes a second, smaller option of a 2.99 per cent rise, from £85.43 to £87.98, but officers do not favour this because it would mean having to find almost £1million more savings during 2025/26. The Treasury has been asked for a comment.

In November, the Chancellor defended the NI increases, telling the BBC that the nation’s finances needed to be put on a “firm footing”.