Don't push up prices, warn economic experts (Image: Shutterstock / Dusan Petkovic)
EXPERTS have called on the Labour Government to step back from an “assault on business” which they warn will lead to higher prices, lower wages and fewer jobs.
Chancellor Rachel Reeves’s plans to hike up National Insurance contributions on employers will go before MPs on Tuesday and leading voices are calling for an urgent u-turn.
DON'T MISS
Powered by
Rachel Reeves and the great Labour Party cash-grab flippantly fleecing your finances
31 Comments
Food prices could shoot up again as weather and Labour's Budget hits suppliers
29 Comments
Motorists handed rip-off fuel prices warning amid weak competition on forecourts
3 Comments
Sickness-hit firms set to offer private health perks to get employees back to work faster
2 Comments
Rachel Reeves savaged for ‘mindblowing' economic incompetence
85 Comments
'Rachel Reeves is in cahoots with her Bank of England pals - and we'll all pay the price'
74 Comments
Rachel Reeves just shot Angela Rayner in the foot - and sunk Labour's only growth plan
980 Comments
Angela Rayner's flagship workers rights reform slammed by watchdog
45 Comments
Keir Starmer would be 'stupid' to retaliate if Donald Trump hits UK with trade tariffs
137 Comments
Reeves swings her wrecking ball as more jobs go, mortgages rise and inflation returns
338 Comments
Halfords begs Rachel Reeves for help as it faces ￡23m employer NI hit
6 Comments
Rachel Reeves humiliated by business chief minutes after speaking at CBI conference
988 Comments
UK pubs 'won't survive' as Labour tax rise means they 'have to sell 170 more pints a day'
104 Comments
Rachel Reeves raked in record ￡67bn from employers' NI before Budget tax raid
49 Comments
The 81 businesses that could slash jobs as Reeves's ‘heartbreaking' Budget takes hold
39 Comments
UK economy on the brink as Rachel Reeves tax raid sparks major hiring freeze
14 Comments
Reeves is wrong to say she won't hike taxes - she'll be ‘back for more' in April
82 Comments
Christmas dinner cost to skyrocket above ￡50 thanks to Labour's cruel Budget
911 Comments
Bars and restaurants struggling to survive 'anti-business' Budget
1 Comments
'I run 10 pubs and will be left footing ￡1m bill because of Labour's tone deaf tax rise'
3 Comments
Rachel Reeves and the great Labour Party cash-grab flippantly fleecing your finances
31 Comments
Food prices could shoot up again as weather and Labour's Budget hits suppliers
29 Comments
Motorists handed rip-off fuel prices warning amid weak competition on forecourts
3 Comments
Sickness-hit firms set to offer private health perks to get employees back to work faster
2 Comments
Rachel Reeves savaged for ‘mindblowing' economic incompetence
85 Comments
'Rachel Reeves is in cahoots with her Bank of England pals - and we'll all pay the price'
74 Comments
Rachel Reeves just shot Angela Rayner in the foot - and sunk Labour's only growth plan
980 Comments
Angela Rayner's flagship workers rights reform slammed by watchdog
45 Comments
Keir Starmer would be 'stupid' to retaliate if Donald Trump hits UK with trade tariffs
137 Comments
Reeves swings her wrecking ball as more jobs go, mortgages rise and inflation returns
338 Comments
Halfords begs Rachel Reeves for help as it faces ￡23m employer NI hit
6 Comments
Rachel Reeves humiliated by business chief minutes after speaking at CBI conference
988 Comments
UK pubs 'won't survive' as Labour tax rise means they 'have to sell 170 more pints a day'
104 Comments
Rachel Reeves raked in record ￡67bn from employers' NI before Budget tax raid
49 Comments
The 81 businesses that could slash jobs as Reeves's ‘heartbreaking' Budget takes hold
39 Comments
UK economy on the brink as Rachel Reeves tax raid sparks major hiring freeze
14 Comments
Reeves is wrong to say she won't hike taxes - she'll be ‘back for more' in April
82 Comments
Christmas dinner cost to skyrocket above ￡50 thanks to Labour's cruel Budget
911 Comments
Bars and restaurants struggling to survive 'anti-business' Budget
1 Comments
'I run 10 pubs and will be left footing ￡1m bill because of Labour's tone deaf tax rise'
3 Comments
Rachel Reeves and the great Labour Party cash-grab flippantly fleecing your finances
31 Comments
Food prices could shoot up again as weather and Labour's Budget hits suppliers
29 Comments
Motorists handed rip-off fuel prices warning amid weak competition on forecourts
3 Comments
Sickness-hit firms set to offer private health perks to get employees back to work faster
2 Comments
Rachel Reeves savaged for ‘mindblowing' economic incompetence
85 Comments
'Rachel Reeves is in cahoots with her Bank of England pals - and we'll all pay the price'
74 Comments
Rachel Reeves just shot Angela Rayner in the foot - and sunk Labour's only growth plan
980 Comments
Maxwell Marlow of the Adam Smith Institute condemned the changes as a “jobs tax” and warned if these go ahead the country will see the “price of products rise at the till, slower wage growth to pay for them and a tougher job market”.
Alex Veitch of the British Chambers of Commerce claimed some small to medium-sized businesses are “looking at seven-fold increases in their bills for NICs and wages”.
He said: “The firms we represent have been left scratching their heads to see how growth will be possible if their costs are rising.”
Don't miss...
'Growth down, stocks down, jobs down, inflation up. How Labour botched economy' [LATEST]
Rachel Reeves savaged for ‘mindblowing’ economic incompetence [LATEST]
'Reeves swings wrecking ball as jobs go, mortgages rise and inflation returns' [LATEST]
Bars and restaurants struggling to survive 'anti-business' Budget [LATEST]
And Tom Clougherty of the Institute of Economic Affairs said that the UK faces nothing less than “an assault on business – something that Britain’s stuttering economy can ill afford”.
He said: “Raising employers’ National Insurance Contributions will cost jobs, reduce wages, and eliminate opportunities. This should not be a surprise: if you tax something, you get less of it.”
Under the plans, which are predicted to raise nearly ￡24billion in 2025-26, the point at which employers start paying National Insurance Contributions on employees’ earnings goes down from ￡9,100 to ￡5,000 – with the rate going up from 13.8 per cent to 15 per cent.
Daniel Herring of the Centre for Policy Studies said the lowering of the threshold would “disproportionately affect low paid workers”.
Rain Newton-Smith, chief executive of the CBI, warned this and other hike in costs “will increase the burden on business and hit their ability to invest, ultimately making it more expensive to hire people or give pay rises”.
Don't miss...
NHS must be scrapped to save lives government is told in urgent message [LATEST]
Progress is finally being made on frustratingly slow Brexit reforms [LATEST]
Farmers will be forced to sell land to cover inheritance tax bills, warns IFS [LATEST]
Expert warns Rachel Reeves’ promise not to raise taxes depends on pure 'luck' [LATEST]
Trending
SUBSCRIBE Invalid email
We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. Read our Privacy Policy
A Treasury spokesman defended the tax hike, saying: “With our public services crumbling and an inherited ￡22billion fiscal black hole, we had to make difficult choices to fix the foundations of the country and restore desperately needed economic stability. By doing this, more than half of employers will either see a cut or no change in their national insurance bills, there will be ￡22.6billion more for the NHS and workers’ payslips will be protected from higher tax.
“We are also permanently cutting business rates for retail, hospitality and leisure from 2026 for the first time, and have capped corporation tax at 25 per cent. Working together with business we’re determined to unlock the growth opportunities of our country for the future.”
DON'T MISS
Powered by
Rachel Reeves and the great Labour Party cash-grab flippantly fleecing your finances
31 Comments
Food prices could shoot up again as weather and Labour's Budget hits suppliers
29 Comments
Motorists handed rip-off fuel prices warning amid weak competition on forecourts
3 Comments
Sickness-hit firms set to offer private health perks to get employees back to work faster
2 Comments
Rachel Reeves savaged for ‘mindblowing' economic incompetence
85 Comments
'Rachel Reeves is in cahoots with her Bank of England pals - and we'll all pay the price'
74 Comments
Rachel Reeves just shot Angela Rayner in the foot - and sunk Labour's only growth plan
980 Comments
Angela Rayner's flagship workers rights reform slammed by watchdog
45 Comments
Keir Starmer would be 'stupid' to retaliate if Donald Trump hits UK with trade tariffs
137 Comments
Reeves swings her wrecking ball as more jobs go, mortgages rise and inflation returns
338 Comments
Halfords begs Rachel Reeves for help as it faces ￡23m employer NI hit
6 Comments
Rachel Reeves humiliated by business chief minutes after speaking at CBI conference
988 Comments
UK pubs 'won't survive' as Labour tax rise means they 'have to sell 170 more pints a day'
104 Comments
Rachel Reeves raked in record ￡67bn from employers' NI before Budget tax raid
49 Comments
The 81 businesses that could slash jobs as Reeves's ‘heartbreaking' Budget takes hold
39 Comments
UK economy on the brink as Rachel Reeves tax raid sparks major hiring freeze
14 Comments
Reeves is wrong to say she won't hike taxes - she'll be ‘back for more' in April
82 Comments
Christmas dinner cost to skyrocket above ￡50 thanks to Labour's cruel Budget
911 Comments
Bars and restaurants struggling to survive 'anti-business' Budget
1 Comments
'I run 10 pubs and will be left footing ￡1m bill because of Labour's tone deaf tax rise'
3 Comments
Rachel Reeves and the great Labour Party cash-grab flippantly fleecing your finances
31 Comments
Food prices could shoot up again as weather and Labour's Budget hits suppliers
29 Comments
Motorists handed rip-off fuel prices warning amid weak competition on forecourts
3 Comments
Sickness-hit firms set to offer private health perks to get employees back to work faster
2 Comments
Rachel Reeves savaged for ‘mindblowing' economic incompetence
85 Comments
'Rachel Reeves is in cahoots with her Bank of England pals - and we'll all pay the price'
74 Comments
Rachel Reeves just shot Angela Rayner in the foot - and sunk Labour's only growth plan
980 Comments
Angela Rayner's flagship workers rights reform slammed by watchdog
45 Comments
Keir Starmer would be 'stupid' to retaliate if Donald Trump hits UK with trade tariffs
137 Comments
Reeves swings her wrecking ball as more jobs go, mortgages rise and inflation returns
338 Comments
Halfords begs Rachel Reeves for help as it faces ￡23m employer NI hit
6 Comments
Rachel Reeves humiliated by business chief minutes after speaking at CBI conference
988 Comments
UK pubs 'won't survive' as Labour tax rise means they 'have to sell 170 more pints a day'
104 Comments
Rachel Reeves raked in record ￡67bn from employers' NI before Budget tax raid
49 Comments
The 81 businesses that could slash jobs as Reeves's ‘heartbreaking' Budget takes hold
39 Comments
UK economy on the brink as Rachel Reeves tax raid sparks major hiring freeze
14 Comments
Reeves is wrong to say she won't hike taxes - she'll be ‘back for more' in April
82 Comments
Christmas dinner cost to skyrocket above ￡50 thanks to Labour's cruel Budget
911 Comments
Bars and restaurants struggling to survive 'anti-business' Budget
1 Comments
'I run 10 pubs and will be left footing ￡1m bill because of Labour's tone deaf tax rise'
3 Comments
Rachel Reeves and the great Labour Party cash-grab flippantly fleecing your finances
31 Comments
Food prices could shoot up again as weather and Labour's Budget hits suppliers
29 Comments
Motorists handed rip-off fuel prices warning amid weak competition on forecourts
3 Comments
Sickness-hit firms set to offer private health perks to get employees back to work faster
2 Comments
Rachel Reeves savaged for ‘mindblowing' economic incompetence
85 Comments
'Rachel Reeves is in cahoots with her Bank of England pals - and we'll all pay the price'
74 Comments
Rachel Reeves just shot Angela Rayner in the foot - and sunk Labour's only growth plan
980 Comments
The Government argues that the smallest businesses will be protected from the increase because the “employment allowance” will go up from ￡5,000 to ￡10,500 – meaning 865,000 employers will pay no contributions at all next year.
But Darwin Friend of the TaxPayers’ Alliance warned that “hiking the jobs” will “devastate the British economy”.
He said: “Rachel Reeves should reverse course and stop this shocking tax grab from British businesses.”