Employer National Insurance Contributions Business Impact 2025-11-04
2025-11-04
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Response quality
Questions & Answers
Q1
Partial Answer
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Context
The previous government left a £22 billion deficit, prompting the Chancellor to implement tax changes in last year's Budget. Family businesses are concerned about the impact of increased employer national insurance contributions and restrictions on business property relief.
I am not convinced that the answer went anywhere near my question. Family businesses are the lifeblood of communities and constituencies like mine. Last week, I met Family Business UK to discuss how the government's national insurance hike and restrictions to business property relief are forcing businesses to pause investment, think twice about taking on more staff and in some cases even close their doors. Ahead of the Budget, will the Chancellor meet me and representatives from family businesses to seek ways in which the Government will work with, not against these really key businesses?
I thank the right hon. Lady for that question, and 43% of employers—almost 1 million—will pay no employer national insurance this year. That is an increase because of the changes we made to the employment allowance. Over half of employers with NIC liabilities will see no change, or will gain overall, and businesses can employ younger people—those aged under 21 and apprentices under 25—without NICs. However, the Conservatives must decide whether they will stick with this change to national insurance. If they are not going to, they will have to admit that they will not be able to put the money into the national health service.
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Assessment & feedback
Meeting representatives from family businesses
Sticking With This Change To National Insurance
Response accuracy
Q2
Partial Answer
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The British Retail Consortium claims the Chancellor's last Budget caused a £7 billion cost to retail, leading to shop closures and job losses. Joe Robertson is concerned about these impacts.
According to the British Retail Consortium, the Chancellor’s last Budget caused a £7 billion cost to retail, leading to shop closures, declining high streets and job losses. If the Chancellor will not acknowledge the damage she has caused, how will she go about rectifying it? Can I recommend that she starts with the 100% business rate relief put forward by the shadow Chancellor?
I thank the hon. Gentleman for that question. In his own constituency in the Isle of Wight, the six-monthly waiting list figures show that 5% fewer people are waiting for 18 weeks or longer. That is only possible because of the money we put into the NHS because of the tax changes we made. On retail sales and the impact on shops, retail sales have increased for the last four months in a row, with the most recent numbers for August and September outpacing expectations.
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Assessment & feedback
Addressing damage to retail caused by Budget
Improvement In Nhs Waiting Times
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Q3
Partial Answer
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Inflation has risen steadily under this government, reaching almost twice its recommended level. Gareth Bacon is concerned about the productivity decline in the NHS despite increased tax on businesses.
It was always blindingly obvious that increasing employer national insurance would lead to an increase in business costs, which would lead to higher prices hitting working people directly and rises in inflation. Sure enough, inflation has risen steadily under this Government, and it is now at almost twice its recommended level. At the last Budget, we were told it was necessary to raise taxes on businesses by £25 billion to pay for the NHS, but just yesterday the Office for National Statistics announced that NHS productivity had fallen by 1.5% since Labour took office. Can the Chancellor explain what exactly my Orpington businesses are paying more tax for?
In the hon. Gentleman’s constituency, the number of people waiting more than 18 weeks for an appointment has also fallen. That is exactly what that money is being used for. He needs to be clear, and so do those on the Opposition Front Bench: if they want to reverse the increase to national insurance, they must also accept that there will be less money for our national health service.
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Assessment & feedback
Explaining impact of increased taxes on business costs
Improvement In Nhs Waiting Times
Response accuracy