FIRMS big and small have slammed the Chancellor for saddling them with extra costs in her Budget. They say Rachel Reeves’ hike in taxes, despite a vow to be “pro-business”, contradicts her growth agenda. Even the Budget watchdog reckons more than three quarters of firms will have to react by lowering wages and freezing hiring.
Employers’ National Insurance Contributions (NICs) will rise from 13.8 per cent to 15 per cent. And reducing the threshold means firms will have to pay NI as soon as a worker earns £5,000.
For staff on £30,000, an employer will have to pay an extra £865. The minimum wage increase will also add £1,400 a year per worker. Small firms who receive 75 per cent business rates relief will see it slashed to 40 per cent, adding £688million in costs next year.
READ MORE ON THE BUDGET Entrepreneurs will face higher rates when selling their business, with capital gains tax rising from 20 per cent to 24 per cent. CHRIS JOWSEY CEO, ADMIRAL TAVERNS, PUB CHAIN WE welcome the Chancellor’s announcement to cut draught beer duty, yet pubs remain overtaxed and the cost of doing business is only rising for publicans. It is even more important now that the Government uses the next two years to implement a proper reform of business rates.
Most read in Business NICK STOWE MONSOON ACCESSORIZE, FASHION RETAIL THIS is a disappointing Budget for retailers. We’d hoped for a reduction in disproportionate business rates; nothing has changed in the immediate term. Inste.
