Senedd members have expressed grave concerns over the impact the 海角视频 Government鈥檚 hike in employer national insurance contributions will have on firms, GPs, universities and charities in Wales.
Plaid Cymru leader Rhun ap Iorwerth warned the rise from 13.8% to 15% in April will have a disproportionate impact in Wales.
He told the Senedd: 鈥淟abour are quick to accuse others of fantasy economics whilst their own plans represent nightmare economics for thousands of employers and employees.鈥
Raising concerns about the impact on job creation and wages, he said employment levels are at their lowest for almost a decade 鈥 lower than anywhere else in the 海角视频.
He accused Labour of breaking a manifesto pledge as he pointed to an Office for Budgetary Responsibility (OBR) assessment that three quarters of the cost will be passed to workers.
Leading a debate Mr ap Iorwerth called on the 海角视频 Treasury to fully cover the added cost to public sector employers in Wales.
He said: 鈥淚t's not the private sector only 鈥 bearing the brunt. Charities, GPs, universities 鈥 sectors already feeling the squeeze, to say the very least 鈥 have been taken to the brink.鈥
He pointed to 鈥渆ye-watering鈥 bills of 拢90,000 for some GPs, with the British Medical Association warning some surgeries could close as a consequence.
Mr ap Iorwerth said mental health charity Plattform faces a 拢250,000 annual bill and Welsh universities, 鈥渁lready crippled by financial challenges鈥, will face significant further pressures. Plaid Cymru鈥檚 urged Welsh ministers to press the 海角视频 Government to apply a wider definition of the public sector workforce to include universities, GPs and charities.
Peter Fox, the Conservatives鈥 shadow finance secretary, similarly accused Labour of breaking a manifesto commitment not to raise tax on working people. The former council leader said: 鈥淭ime and time again 鈥 the chancellor went on TV and made the claim, only to u-turn after they got into power.鈥
Mr Fox, who represents Monmouth, said even a 1% rise in employer national insurance contributions for the public sector would cost Welsh taxpayers an extra 拢100m.
He told the Senedd: 鈥淭he 海角视频 Government has said that it will provide funding to cover the cost of national insurance contributions for those workers.
鈥淗owever, this will still come out of the taxpayer鈥檚 pocket 鈥 ultimately it is the taxpayers who are going to pay for the Chancellor鈥檚 tax increase.鈥
Luke Fletcher, Plaid Cymru鈥檚 shadow economy secretary, warned the national insurance rise will be a drag on an 鈥渁lready anaemic鈥 Welsh jobs market.
His colleague Sioned Williams, who also represents South Wales West, described the chancellor鈥檚 鈥渂ack-of-a-fag-packet鈥 plans as senseless.
She raised concerns about six-figure increases in tax bills for charities including Tenovus, Marie Curie, Citizens Advice Cymru and the Wastesavers Charitable Trust.
Cefin Campbell, Plaid鈥 Cymru鈥檚 shadow education secretary, said the national insurance increase will cost Welsh universities an estimated extra 拢20m a year. The Mid and West Wales MS warned: 鈥淲ithout a shadow of a doubt, these additional costs could push our higher education institutions over the precipice.鈥
Labour鈥檚 Hefin David said difficult decisions had to be made to fill a 拢22bn 鈥渂lack hole鈥 left by the Tories but he rejected Plaid Cymru claims of a return to austerity.
Dr David told the Senedd: 鈥淵es, tough decisions have to be made but I think that in the longer term, this is to everyone's benefit.鈥
Andrew RT Davies, leader of the Conservative opposition, disputed the 鈥渋ncorrect鈥 拢22bn figure, saying the OBR found a 拢9bn gap.
Replying to the debate, Mark Drakeford stressed that neither he nor the Welsh Government has responsibility for national insurance contributions.
Wales鈥 Finance Secretary, who was appointed in September, criticised 鈥渇antasy economics鈥 from opposition members on the Plaid Cymru and Conservative benches.
Deriding the 鈥減olitics of the playground", he said: 鈥淏oth of them are willing to spend money on almost anything; neither of them are willing to raise the money necessary from anyone.鈥
Prof Drakeford said the chancellor returned national insurance broadly to where it had been as a share of gross domestic product for 13 of the 14 Conservative years.
The former First Minister pointed out that the 海角视频 Government offset national insurance rises on small employers by more than doubling the employment allowance.
He told the debating chamber or Siambr: 鈥淚f you want to pay for things, you have to find the money to do so. That is what the chancellor had to do. That is how we will get the money that will come to public services here in Wales.鈥
Senedd members voted 25-19 against Plaid Cymru鈥檚 motion.
