Businesses across the UK are pleading with Chancellor Rishi Sunak to postpone the proposed Â£12bn National Insurance (NI) hike, calling it unreasonable and poorly timed. The hike, which is set to take effect from April 2022, will see employers and employees pay an additional 1.25% in NI contributions to fund social care.
The move has been met with widespread criticism from business leaders, who argue that it will place an unnecessary burden on struggling businesses that are still recovering from the impact of the pandemic. Many have called for the government to delay the hike until the economy has fully recovered and businesses are in a stronger position to absorb the additional costs.
The Confederation of British Industry (CBI) has warned that the hike could lead to job losses and hinder the UK’s economic recovery. The organization has called for the government to consider alternative funding options, such as a wealth tax or a reform of the pension system.
The Federation of Small Businesses (FSB) has also voiced its concerns, stating that the hike will hit small businesses particularly hard. The FSB has called for the government to provide additional support to small businesses to help them cope with the increased costs.
The British Chambers of Commerce (BCC) has echoed these sentiments, stating that the hike is “poorly timed” and will hinder the UK’s ability to attract investment and create jobs. The BCC has called for the government to focus on measures that will support businesses and encourage growth, rather than imposing additional costs.
The government has defended the hike, stating that it is necessary to fund social care and address the growing demand for services. However, many businesses argue that the timing is wrong and that the government should focus on supporting businesses and the economy as a whole, rather than imposing additional costs.
In conclusion, the proposed NI hike has sparked widespread concern among businesses across the UK. While the government argues that it is necessary to fund social care, many businesses argue that the timing is wrong and that it will hinder the UK’s economic recovery. As such, it is important for the government to listen to the concerns of businesses and consider alternative funding options that will support businesses and encourage growth.