RE: Business Friendly Labour11 Nov 2024 11:57
Britain’s biggest pubs, hotels and restaurants have told Rachel Reeves they face being forced to shut sites and make “drastic” job cuts after the Chancellor launched a tax grab on employers.
In a letter to Ms Reeves, more than 200 hospitality bosses warned the sharp increases in National Insurance contributions (NICs) were “unsustainable” and would lead to venues shutting down and slashing jobs within a year.
Ms Reeves last month announced an increase in NICs paid by employers from 13.8pc to 15pc. The threshold at which employers become liable to pay the tax also dropped from £9,100 to £5,000 per year. Both changes will come into effect from April next year.
The letter, organised by trade body UKHospitality, said the changes would cost the sector an estimated £3.4bn annually. Among the signatories are JD Wetherspoon, Wagamama owner The Restaurant Group, Young’s, and Whitbread, which owns Premier Inn, the UK’s largest hotel chain.