A heated exchange in Parliament has seen MP Liz Saville Roberts and Secretary of State for Wales, Jo Stevens, argue about the impact National Insurance hikes and cuts to welfare support will have across Gwynedd.

Questioning Stevens, Mrs Saville Roberts cited concerns raised by the owners of a children’s nursery, a hair salon, and other businesses who say the NI hike will impact business and the ability to recruit new staff.

Speaking in the House of Commons, the MP said: “Elaine’s hair salon in Llanrug, Pitian Patian nursery in Llanwnda, and several care homes and GP surgeries across Dwyfor Meirionnydd tell me national insurance hikes will stop them hiring any new staff.

“Her government says they’re cutting welfare to get people into jobs. What jobs?”

Ms Saville Roberts challenged the secretary to justify how these policies align with the government’s stated aim of increasing employment, warning the measures would instead lead to fewer job opportunities across Gwynedd.

She added: “Labour’s betrayal of working people in Wales is becoming clearer by the day. They promised change, but instead, we are seeing the continuation of cruel, Conservative-style austerity that will do nothing to improve the lives of people in our communities.

“The increase in employer NI contributions will have far reaching repercussions across countless business in my constituency, not to mention in both health and social care settings, creating a perfect storm in which providers have no choice but to cut back on services.

“Businesses across Gwynedd tell me of the huge financial burden they now face. Small businesses in particular are the lifeblood of the Welsh economy. The vast majority of our businesses are SMEs – so supporting them is crucial if we want local economies to thrive.

“Instead, Labour’s proposed increase in employer National Insurance contributions risks imposing additional burdens on this crucial yet already struggling sector.

“I urge Labour to consider the real cost of their regressive proposals on the businesses that are the lifeblood of our local economies and consider a fairer approach.”

Stevens said if Plaid was in power they would face the same “£22m black hole” that has forced Labour to “make difficult decisions”, adding: “In her constituency they will want to have more investment in our NHS, more investment in our public services, more investment to support businesses. Her party voted against against it all in the Welsh budget.”

Ms Saville Roberts said: “If her government agreed with her counterparts in Cardiff we’d have the money from the Crown Estate as well.”

Gemma Jones, owner of Elaine’s Hair Salon in Llanrug, said the salon can no longer accept new apprentices “due to the immense financial burden placed on the business”.

“Businesses like ours who are labour intensive and paying VAT are already disadvantaged, ahead of the NI changes in April.

“We pay not far from £50K of VAT every year. We can't claim VAT either. For every £10 that comes through the till, £2 goes straight to VAT. “On top of that are the rising costs from the increase in NI.”