Police Scotland’s chief constable Jo Farrell has warned that it may have to freeze recruitment plans and cut staff numbers due to UK government’s National Insurance costs

Police officer numbers in the Highlands could be frozen or even cut as a result of costs associated with new National Insurance changes, the force’s chief has warned.

Chief Constable Jo Farrell issued the stark warning in an update to the Scottish Police Authority on Thursday, and said the service is now reviewing its recruitment plans as part of wider savings it needs to make to cover the potential additional National Insurance costs in 2025-26.

Increases in employers’ National Insurance Contributions (NICs) come into force in April, when organisations will be asked to contribute 15 per cent on employee salaries above £5000 - up from the 13.8% on salaries above £9100 that was previously in place.

The move was made by the UK government to provide increased funding for public services and plug what Westminster has dubbed a “black hole” in public spending plans.

But the increase has sparked controversy, with businesses and other organisations claiming it will put more pressure on those bodies with already tight finances.

Speaking at a Scottish Police Authority board meeting, Chief Constable Farrell said that, following a planned officer intake in March, recruitment would require to be reduced during the coming financial year if additional costs, totalling £25.3 million, were not fully funded.

Chief Constable Farrell said: "We remain in close and constructive discussions with the Scottish Government, including this week, and the current indication is we will be supported with 50 per cent of the costs.

"I previously welcomed their budget proposals, which enabled us to progress the vision and business plan, which was endorsed by the Authority, while also maintaining our workforce.

"At the same time, I was explicit that additional employer National Insurance costs facing Police Scotland in 2025-26, following an announcement by the Chancellor of the Exchequer in October, should be met in full.

"Through hard reform already achieved, including large workforce reductions, policing in Scotland has removed over £200m from the annual cost base compared to legacy arrangements, while protecting and improving service.

"Our efficiency means over 86 per cent of our revenue costs is spent on workforce pay.

"Policing in Scotland’s record of fiscal discipline and rigour has been an important component of stability and credibility in recent years and delivering a balanced budget is a priority for me.

"The 2025-26 budget for policing is very challenging, and already includes a requirement to achieve £9m of efficiencies.

"We must also anticipate pay award costs and further costs associated with the Public Inquiry into the death of Sheku Bayoh.

"There are very few levers to achieve further savings, other than reducing the workforce.

"As outlined in my report, we are committed to another recruitment intake next month, but we are reviewing our recruitment profile for the coming financial year.

"My commitment to ongoing reform is evidenced through our 2030 vision and our three year business plan. We are turning over every rock to achieve further efficiencies to build an effective and sustainable operating model which delivers for communities.

"Constraints on funding will slow the progress of work that’s started and which is planned."