Employer National Insurance Contributions Impact on Employment 2025-03-12

2025-03-12

TAGS
Response quality

Questions & Answers

Q1 Partial Answer
Rebecca Smith Con
South West Devon
Context
Rebecca Smith questioned the potential negative impact on employment in Wales due to an increase in employer national insurance contributions. She cited specific challenges faced by businesses, particularly Serpells.
Businesses across Wales and South West Devon are being hit not only by Labour’s job tax but also by increasing minimum wage, rising costs, and other business taxes. These factors force many to reduce their workforce; what reassurances can the Minister give to businesses in Wales that they have a promising future?
Small and micro businesses in Wales are being supported through an employment allowance increased to £10,500. Over half of small and medium-sized companies will pay less or no national insurance contributions at all due to this allowance. Furthermore, the Welsh Government’s education budget was voted against by Rebecca Smith's party.
Assessment & feedback
The Secretary of State did not directly address the specific economic challenges raised by Rebecca Smith and did not provide concrete reassurances for businesses' future under current policies.
Changed Subject To Previous Votes Against Welsh Budget Referred Back To Employment Allowance
Response accuracy
Q2 Partial Answer
Mims Davies Con
East Grinstead and Uckfield
Context
Mims Davies raised concerns about job losses in Wales due to the national insurance rise, citing Cardiff University as an example. She questioned whether jobs were being offshored because of these policies.
Due to Labour's national insurance increase, thousands of jobs at Cardiff University are reportedly at risk. Can the Minister confirm that those roles are indeed being offshored and outline her satisfaction with this situation?
The notion of outsourcing jobs was dismissed by the Minister, who attributed it instead to a decrease in international student recruitment under previous Conservative Government watch. She pointed out that Rebecca Smith's party voted against support measures for businesses and apprenticeships.
Assessment & feedback
Did not confirm or deny offshoring of jobs; redirected blame onto the opposition’s failure to vote in favor of supporting measures.
Redirecting Blame On Previous Government'S Policy Challenging Mp'S Stance On International Student Recruitment
Response accuracy
Q3 Partial Answer
Liz Saville Roberts PC
Dwyfor Meirionnydd
Context
Liz Saville Roberts raised concerns over the impact of national insurance hikes on local businesses, specifically mentioning the challenges faced by Elaine’s Hair and Beauty Salon in Llanrug and Pitian Patian Nursery in Llanwnda.
National insurance hikes will prevent many businesses from hiring new staff. The Secretary of State's Government claims they are cutting welfare to get people into jobs. What specific jobs?
Plaid Cymru’s manifesto had £5 billion in unfunded commitments, and if they were in power, we would face the same legacy with a £22 billion black hole as under the previous Tory government. The current Government supports investment in NHS, public services, and businesses; however, Rebecca Smith's party voted against this support.
Assessment & feedback
Did not provide specific job examples or evidence of positive employment outcomes from welfare cuts.
Redirecting Criticism To Opposition’S Unfunded Commitments Challenging Previous Votes Against Support Measures
Response accuracy