Investment

The Lancashire small business group has exploded with plans to increase National Insurance

So far Downing Street has refused to deny rumors widely reported that National Insurance contributions could be increased to fund a new social protection plan, in a move that would undermine a conservative manifesto promise.

Boris Johnson is said to be considering plans to raise National Insurance payments by one percentage point for employers and employees to raise £ 10bn a year to help support the aging population.

The Prime Minister has yet to get an agreement on the line but understands that closely.

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Mike Cherry
Mike Cherry

Amid speculation that contributions to national employer insurance (NICs) could increase, Federation of Small Businesses chairman Mike Cherry said: “After the huge amount of damage done to businesses in the last 16 months on, the Government may not be serious about a strong economic recovery if it thinks a tax hike on jobs is a good idea.

“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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