CONFUSION over Scottish and Welsh public finances arose today as the Treasury admitted it was in talks with both administrations about additional funding for the public sector.

The public sector in England is exempt from the rise in employer National Insurance (NI) contributions announced in last week’s Budget, but not in Scotland and Wales.

Following Plaid Cymru’s concerns raised with the Star about potential funding shortfalls in Wales, it emerged the cost to the public sector in Wales could be as much as £380 million and £500m in Scotland.