Ben Lake has told the House of Commons that changes to National Insurance will lead a £4 million increase in costs for Ceredigion County Council.

The Plaid Cymru Ceredigion-Preseli MP raised the matter during a debate on the Finance Bill, raising concerns about the financial strain on public services caused by the increase in employer National Insurance contributions.

Mr Lake said the £4 million increase for Ceredigion council is due to the reduction of the income tax threshold to £5,000 coupled with the increase in Employer National Insurance contributions.

He asked when the UK Government would announce how much money would be provided to the Welsh Government to plug the shortfall caused by the increase in employer National Insurance contributions for the public sector.

The Exchequer Secretary to the Treasury, James Murray MP, responded that he “will not give inside information on any ongoing discussions between the Treasury and devolved Governments”.

Mr Lake responded by criticising the UK Government for a lack of transparency and urgency on the matter.

The policy for reimbursing increases in employer national insurance contributions is well established.

The last Government followed a similar process in relation to the health and social care levy, whereby Departments, employees and other direct public sector employees are typically refunded the entire increase and third parties, contractors and so on are not.

Speaking after the debate, Mr Lake said: “The Minister’s answer will not give much comfort to local authorities across Wales, or indeed the rest of the UK, who are grappling with budgetary uncertainty.

“The lack of clarity on when additional support might be confirmed only exacerbates the challenges faced by public services already under immense strain. Communities deserve assurances that essential services will not be further jeopardised by funding gaps caused by UK Government policy decisions.”