Concerns raised in the discussion of increasing contributions to NI-Daily Business
Mike Cherry: government ‘can’t be serious’
Concerns were recorded at the prospect of increasing employer national insurance contributions.
The UK government is considering the idea of discussing the social care crisis.
Ministers appear to be withdrawing from a new tax on all over 40, including pensioners, who have favored the NI increase, a move that has pleased more public support in the past.
The issue was caused by a clash between Boris Johnson and Chancellor Rishi Sunak, but the pair are said to be close to an agreement.
The plan is due to be announced this week but with key Cabinet members, including Mr Johnson and Mr Sunak now separated, it is likely to be delayed, possibly until the autumn.
Critics have rushed at the plan for being unfair to children.
Torsten Bell, chief executive of the Resolution Foundation, said: “This is a disproportionate tax load on younger and lower-wage workers, compared to a more equitable income tax increase.”
Paul Johnson, head of the Institute for Fiscal Studies, said: “Funding social protection only from national insurance would be very unequal.
“This will be a continuation of a long -term policy of hitting the working age while protecting pensioners even for something designed to benefit people beyond pension age. It’s a question of fairness.”
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Federation of Small Business national chairman Mike Cherry questioned the timing of the transition.
“After the huge amount of damage done to businesses in the last 16 months, the Government cannot be serious about a strong economic recovery if it thinks the tax hike on jobs is a good idea. ,” he said.
“Surprisingly just 24 hours after many businesses reopened, ministers think this is a good time to land small companies in this bombshell.
“Employers are weighing decisions as we talk about who they can afford to keep in the long run as the job retention scheme collapses – the last thing the Government should do is increase the risk of an increase in unemployment.
“Jobs don’t create themselves. The more the Government chooses to put in labor costs, the fewer jobs there will be for young workers who have been hit hard by the pandemic.
“This Government has promised to be a champion of the small community community and rejected NIC increases in its manifesto. To return to that promise, it would destroy trust in small companies and sole traders on which to rely. our recovery.
“NICs essentially serve as an employment tax, making it harder for companies to create opportunities. To raise them as furlough schemes and broader support measures will end our economic recovery. in its tracks before it even began.
“Many business owners have had the worst 16 months of their professional lives-many are now struggling with staff pings, emergency loans and late payments.
“Against that backdrop, the Government should do everything it can to clean up the way to hire, invest and thrive. Instead, we hear it is considering doing the opposite. It should immediately clarify the issues and re-point to promises of this manifesto. “
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