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Chancellor set to raise National Insurance for employers to fund public services

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THE Chancellor is poised to announce a significant increase in National Insurance contributions for employers, aiming to generate £20 billion in additional funding for public services, including the NHS in England.

The Budget, set for Wednesday, will likely feature a lowered threshold for employer contributions to National Insurance, allowing these combined measures to become the largest revenue drivers in the upcoming Budget. However, Chancellor Rachel Reeves is not expected to apply the increase to employers’ pension contributions.

Currently, employers pay 13.8% on earnings over £175 a week. A two-point hike to 15.8% would yield an estimated £18 billion annually, though the threshold adjustment may push that figure higher.

A government source commented: “There is a universal consensus that the NHS needs more money. That means asking businesses to help out. The choice is investment versus decline.”

Tough choices for NHS funding

Speaking at a news conference during the Commonwealth Heads of Government Meeting in Samoa, Prime Minister Sir Keir Starmer remarked that the government is prepared to make “tough decisions” to support the NHS. However, he declined to provide further Budget details.

National Insurance represents the UK’s second-largest revenue stream after income tax, encompassing contributions from employees, the self-employed, and employers. The Chancellor has signaled that while the Labour manifesto promised not to increase National Insurance for “working people,” this was intended to shield employee contributions, not those of employers.

Wider budget implications and business concerns

As Labour prepares for its first Budget in nearly 15 years, concerns are rising about the potential for further tax changes, including a freeze on income tax thresholds, a possible hike in taxes on asset sales, and revisions to inheritance tax.

In a recent International Monetary Fund meeting, Reeves underscored the need for responsible spending, hinting that a return to austerity is off the table. Instead, she emphasized that day-to-day expenses must align with tax receipts, given the current state of critical services like the NHS and prisons.

Yet the potential impact of these changes has sparked concerns among businesses, who argue that a National Insurance hike could dampen job creation and wage growth, ultimately hampering economic expansion. The government, however, maintains that these funds are essential to rescue the NHS, even as critics argue the increase is a “tax on jobs” and breaches the Labour manifesto.

Addressing the housing crisis

In addition to healthcare funding, the Chancellor is expected to unveil a £500 million initiative to build up to 5,000 affordable homes in England, aimed at addressing the national housing crisis. This will be accompanied by a consultation to limit Right to Buy, protecting council housing stock for future generations.

Meanwhile, the Fire Brigades Union has called on Reeves to deliver a Budget that ends what they describe as the “catastrophic austerity era.” In a letter to the Chancellor, Union leader Matt Wrack warned of potential strike action if the Budget does not provide substantial funding, citing severe hardship among firefighters due to prolonged real-term pay cuts.

As Wednesday approaches, Labour faces the task of balancing its commitment to economic growth with the urgent demands of public services. The Conservatives, however, have criticized the impending National Insurance hike, accusing Labour of redefining the term “working people” as the Budget deadline looms.

 

Crime

Broad Haven man remanded in custody over sexual harm prevention order breach

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Defendant admitted using Xbox without informing police as required under court order

ANTHONY COOMBES, aged 26, of Sand Banks, Broad Haven, appeared before Llanelli Magistrates’ Court on Thursday (Mar 20) charged with breaching a sexual harm prevention order.

The court heard that between February 26 and March 19, 2026, at Haverfordwest, Coombes repeatedly breached the order by using an Xbox device without informing police within three days, as required.

The offences relate to a sexual harm prevention order imposed at Swansea Crown Court on October 20, 2021.

Coombes indicated guilty pleas to the offences at the first hearing.

Magistrates committed the case to Swansea Crown Court for sentence.

He was remanded in custody ahead of the next hearing, which is due to take place at 9:00am on Friday, April 3, at Swansea Crown Court.

The court refused bail on the grounds that he was likely to offend, citing the nature and seriousness of the offences and his previous record and character.

A pre-sentence report was ordered.

 

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Man arrested after suspected drugs-related death in Haverfordwest

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Police say death not suspicious as 46-year-old arrested over alleged Class A drug supply

A MAN has died following a medical emergency at a property in Haverfordwest, police have confirmed.

Emergency services were called at 3:18pm on Wednesday (March 18) after a report of a medical incident.

A man was pronounced dead at the scene.

Dyfed-Powys Police said the man’s next of kin have been informed and are being supported by officers.

The death is not being treated as suspicious at this time.

However, police confirmed that a man, aged 46, was arrested on suspicion of being concerned in the supply of Class A drugs.

He has since been released under investigation while enquiries continue.

No further details about the deceased have been formally released.

 

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Crime

Illegal dog breeders ordered to pay over £129,000 after council probe

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FOUR people from Mynyddygarreg, Kidwelly, have been ordered to pay more than £129,000 following a successful prosecution for illegal dog breeding.

At Swansea Crown Court on Tuesday (Mar 10), before His Honour Judge Thomas KC, Stacey May June Edwards, Peter John Edwards, Sian Eleri Thomas and David Malcolm James Thomas, all of Sea Breeze, Mynyddygarreg, pleaded guilty to offences under the Breeding of Dogs (Wales) Regulations 2014.

The court imposed confiscation orders totalling £129,873.41 under the Proceeds of Crime Act across the four defendants. They were also ordered to pay £8,000 in costs, while each defendant received a £2,000 fine.

The investigation began in April 2021 after Carmarthenshire County Council’s Animal Health team received an enquiry from Peter Edwards about obtaining a dog breeding licence. Although licensing guidance was provided and a partial application was submitted in February 2022, this was later withdrawn.

In March 2024, the council received a complaint that puppies were being advertised for sale without the required licence. Officers subsequently contacted online advertising platforms and issued data requests to assess the scale of activity.

Analysis of records from Pets4Homes, Freeads and Gumtree revealed multiple litters being advertised by members of the same household.

Correspondence under the Police and Criminal Evidence Act confirmed that up to 25 dogs were kept at the property, including between 16 and 19 breeding females.

While some defendants claimed joint ownership of the dogs, others attempted to minimise their involvement.

The Herald understands that numerous puppy advertisements were posted between July 2020 and April 2025, demonstrating a sustained pattern of unlicensed breeding.

Carmarthenshire County Council’s Cabinet Member for Climate Change, Decarbonisation and Sustainability, Cllr Aled Vaughan Owen, said: “This case demonstrates the council’s firm stance against unlicensed and illegal dog breeding.

“These regulations are in place to protect animal welfare and ensure that breeding activities are subject to proper oversight. The scale of activity uncovered at this property was entirely unacceptable, and we welcome the court’s decision to issue significant confiscation orders under POCA.”

He added: “We urge anyone with concerns about illegal dog breeding to report it. Our Animal Health officers will continue to investigate thoroughly and take action against those who disregard the law.”

Residents are reminded that anyone breeding and selling dogs must comply with licensing regulations designed to protect both animal welfare and consumers.

 

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