The hospitality sector and the wider business community have hit out over a potential rise in National Insurance paid by employers, arguing it will make hiring staff and creating jobs more difficult and stifle growth.
Leading business groups in the UK raised concerns over the potential tax rise – something Prime Minister and the chancellor has so far failed to rule out.
Kate Nicholls, Chief Executive of UKHospitality, said:
“Labour market data released today shows that vacancies in hospitality remain stubbornly high.”
“What this clearly demonstrates is the need for Government to incentivise sectors like hospitality to create jobs and support employment.”
“The rumoured increase to employer National Insurance Contributions would do the opposite – a tax on jobs.
“An increase would particularly hammer sectors like hospitality, where staffing costs are the biggest business expense.”
“Hospitality businesses are much less able to stomach yet another cost increase, when they’re already managing increases in other areas like wages, food, drink and energy. But it is hospitality that is most likely to support people from economic inactivity back into the workforce.”
“If the Government is to achieve its plan for growth and getting more people into work, it should use the Budget to incentivise that. It should be looking to support job creation, as well as reducing the cost burden for businesses.”
“For hospitality, that means no increases to employer National Insurance Contributions and action to avoid a billion-pound tax bill for venues when business rates relief is set to end in April.”
