UK Businesses Warn of Closures Amid National Insurance Hike

Chancellor Rachel Reeves faces backlash as increased employer contributions threaten care homes and hospitality sectors.

Care homes and GP surgeries warn of potential closures due to increased national insurance contributions, which could severely impact vulnerable populations.
More than 200 hospitality leaders, including major chains like JD Wetherspoon and Whitbread, have expressed concerns about 'unsustainable' tax hikes leading to job cuts and venue closures.
The new tax policy raises employer contributions from 13.8% to 15%, with the threshold for liability dropping from £9,100 to £5,000 annually, effective April next year.
Critics argue the tax increase disproportionately affects part-time and low-wage workers, potentially slowing wage growth and making some jobs unviable.
The government defends the tax changes as necessary to address a fiscal deficit and support public services, despite warnings from the Budget Responsibility about potential cost pass-through to consumers.