Employer National Insurance Contributions 2025-07-01

2025-07-01

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Response quality

Questions & Answers

Q1 Partial Answer
Gagan Mohindra Con
South West Hertfordshire
Context
The Chancellor has increased employer national insurance contributions. The hon. Member is concerned about the potential impact on businesses.
What assessment she has made of the potential impact of the increase in employer national insurance contributions on businesses? Given the recent trio of U-turns, this Government have demonstrated that they are keen to change their minds as well as to create new multibillion-pound black holes. Will the Chancellor do the right thing and U-turn on the increase in national insurance contributions, to provide businesses with a much-needed boost in the sluggish economy that she has created?
The Government protected the smallest businesses from changes to national insurance by increasing the employment allowance from £5,000 to £10,500. That means that this year 865,000 employers will pay no national insurance contributions at all, and more than half will either gain or see no change to their national insurance contributions. It is a bit rich for anyone in the Conservative party to mention black holes, after the one that they left for us to clear up.
Assessment & feedback
The Chancellor did not address whether she would U-turn on the increase but defended the impact of the changes and criticized the opposition.
It Is A Bit Rich For Anyone In The Conservative Party To Mention Black Holes, After The One That They Left For Us To Clear Up.
Response accuracy
Q2 Partial Answer
Richard Fuller Con
North Bedfordshire
Context
The Chancellor has increased employer national insurance contributions. The hon. Member is concerned about the potential impact on businesses.
Labour’s jobs tax has really clobbered British businesses. The Office for National Statistics says that the number of available jobs is collapsing. Perhaps the Chancellor has not updated herself on how British business thinks about confidence: the Institute of Directors has said today that business confidence has plummeted; the Bank of England is warning of significant declines in wage growth; and the British Chambers of Commerce says that taxes on businesses cannot be increased. The Chancellor has bungled welfare changes, eviscerating confidence in the Prime Minister and blowing an even bigger hole in the public financing, meaning that she will raise taxes yet again this autumn. Will she avoid creating the same damaging uncertainty she did last summer by ruling out from the Dispatch Box today any further tax increases on British businesses?
I am not going to take lessons from the Conservatives: they increased taxes 25 times. When they increased taxes, it was always ordinary working people who paid the price. In our Budget last year, we protected the payslips of ordinary working people by not increasing their income tax, their national insurance or their VAT, and we did not go ahead with the increase in fuel duty that the Conservatives had planned.
Assessment & feedback
The Chancellor did not rule out further tax increases but defended the impact of previous changes.
I Am Not Going To Take Lessons From The Conservatives: They Increased Taxes 25 Times.
Response accuracy
Q3 Partial Answer
Daisy Cooper LD
St Albans
Context
The hon. Member is concerned about the impact of employer national insurance contributions on non-profit businesses and charities.
Non-profit businesses and charities have been hit really hard by the jobs tax. Last week, my local meals on wheels service told me that businesses like theirs around the country are having to make redundancies and put up prices for vulnerable people. In the context of today’s welfare reforms that the Government are pursuing, can the Chancellor confirm whether the Treasury will conduct any assessment of the increased cost of essential and charitable services relied on by disabled people and their carers at a time when their welfare support could be cut?
As the hon. Lady knows, the changes we have made to the welfare Bill will mean that nobody who is currently receiving personal independence payments will have a cut, so I just do not think the premise of her question is correct.
Assessment & feedback
The Chancellor did not confirm any assessment but defended the changes and their impact on personal independence payments.
As The Hon. Lady Knows, The Changes We Have Made To The Welfare Bill Will Mean That Nobody Who Is Currently Receiving Personal Independence Payments Will Have A Cut.
Response accuracy