18 Oct 2024
The UK's business groups have voiced concerns over a potential rise in employer National Insurance contributions (NICs) in the Autumn Budget.
Rain Newton-Smith, Chief Executive of the Confederation of British Industry, said that a rise in NICs would prove to be a 'difficult move' for employers, and would 'increase the cost of taking someone on'.
Meanwhile, Alex Veitch, Director of Policy at the British Chambers of Commerce (BCC), stated that raising employer NICs at the Budget on 30 October would 'hobble growth and lead to businesses having less money to invest in their staff'.
Kate Nicholls, Chief Executive of UKHospitality, warned that any rise in NICs would 'particularly hammer sectors like hospitality, where staffing costs are the biggest business expense'.
Prime Minister Keir Starmer and Chancellor Rachel Reeves have refused to rule out a rise in employer NICs in the Budget, as part of plans to plug what the government says is a £22 billion hole in the public finances left by the previous administration.