A Welsh police force’s annual funding uplift could be wiped out by increases to employer’s National Insurance contribution according to a Senedd Member.

The MS for Monmouth, Peter Fox, has said Gwent Police could be financially worse off in 2026 due to the NI hike introduced by the UK Labour Government in 2024.

“This amounts to a real-terms cut in funding, around £1 million lost by Gwent Police once higher taxes are taken into account,” said Mr Fox.

“Less money for the police means more opportunities for criminals.”

While funding is set to increase above roughly in line with inflation, at 3.9 per cent, this year, there are concerns higher taxation will result in the Government taking more away in return. In wales, forces are funded by a combination of funding from Westminster and the local council tax precept, alongside Welsh Government support for specific initiatives. But this, Mr Fox argues, does not account for the imposed rise on the cost of employment.

Police forces are disproportionately affected by higher payroll taxes when compared to other organisations, as roughly 80 per cent of their budgets are spent on staff costs.

Data from the Welsh Government released in June 2025 also revealed that Monmouthshire spends the least amount on policing per head out of the 22 local authorities in Wales, sparing £363 less per head than the Welsh average.

“The Labour Government promised to compensate public services for the impact of increasing National Insurance, but it has failed to do so,” Mr Fox continued.

“Ministers will point to headline figures and claim funding is up, but they won’t mention they are clawing large sums back through extra taxes at the same time.”

“The only people who benefit from this are criminals, while local communities continue to pay the price of this Labour Government.”