Ahead of the Budget, businesses, particularly smaller ones, warned such costs could leave them less spare cash to hire staff or offer pay rises – and ultimately impact the government’s goal of growing the UK economy.
Reeves said the “only way” to drive growth was through investment and warned “there are no shortcuts”.
National Insurance Contributions is a tax paid by employers on top of the wages they pay out. It is the largest revenue generator of the Budget, totalling £25bn of the £40bn tax bill raised by the chancellor.
“We are asking business to contribute more,” said Reeves. “I know that there will be impacts of this measure felt beyond businesses.”
Businesses come in all shapes and sizes, meaning the impact of the choices made by the chancellor in her Budget will affect them differently.
Kate Nicholls, chief executive of UK Hospitality, said the tax rises would be a “brake on growth” for the UK.
“Businesses on paper-thin margins are already grappling with big increases in employment costs – we are seeing jobs and hours cut, investment slashed and business viability undermined as well as prices going up,” she said.
https://www.bbc.com/news/articles/c4g7x6p865zo,