Commons Sense

House of Commons · Ministers' Questions

Employer National Insurance Contributions: Economic Growth

Tuesday 9 September 2025 · 5 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 4 Not answered 0

Key points

  • Wendy Chamberlain questioned the impact of national insurance increases on the hospitality industry in North East Fife.
  • Dr Spencer highlighted the struggles of hospitality companies in his constituency due to national insurance increases.
  • Clive Jones inquired about steps the Minister is taking to alleviate the financial burdens on businesses caused by the national insurance hike.

Topics (select to filter)

Questions & Answers

Q1 Wendy Chamberlain Lib Dem North East Fife
Economy Employment Business & Trade
Context

The hospitality industry in North East Fife has reported financial difficulties due to increased national insurance contributions, impacting part-time workers and businesses.

Question

The national insurance increases in last year’s Budget not only increased national insurance but also impacted part-time workers heavily relied upon by the hospitality industry. Hospitality companies in North East Fife have written to me about the real cost increases they are facing and sharing with their customers. Does the Minister agree that there has been an impact on hospitality, and will he commit to ensuring that the Chancellor delivers a hospitality-friendly Budget come the autumn?

Answer from Dan Tomlinson (Exchequer Secretary to the Treasury)

I thank the hon. Member for being the first parliamentarian today who has not asked me, ‘Who will you be backing in the Labour deputy leadership contest?’ I appreciate that very much. When it comes to small businesses, particularly those in hospitality, overall employment has increased by 380,000 since the Government came to power. This week, I will be having discussions with members of UKHospitality to think about how we can support the sector more through the changes to business rates announced last year. We will come forward with more details on that in the Budget later this year.

Partly answered

How: Working With Partners, Will Focus On

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Q2 Spencer Green Runnymede and Weybridge
Economy Taxation Employment
Context

Lebanese Please, a restaurant in Weybridge, is struggling with the impact of increased national insurance contributions on its business operations.

Question

Like many hospitality companies, Lebanese Please in my constituency is struggling with the impact of national insurance increases. If the partly new Treasury Front-Bench team are considering going for a team lunch, I recommend the warm hospitality of Runnymede and Weybridge, where they can see for themselves the impact that this horrid, harmful tax is having on local businesses across the country.

Answer from Dan Tomlinson (Exchequer Secretary to the Treasury)

I would not presume to know where the next Treasury ministerial awayday will happen, but perhaps we will have to consider the restaurant in the hon. Member’s constituency. He is a strong advocate for the businesses in his constituency. I hope he knows that I advocated from the Back Benches—and will continue to do so in government—for policies that we can implement to boost economic growth and living standards, so that more people have more money to spend in businesses such as the one he mentions in his constituency.

Partly answered

How: Working With Partners

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Q3 Clive Jones Lib Dem Wokingham
NHS Economy Taxation
Context

Business owners in Wokingham have reported financial burdens due to increased national insurance contributions, impacting hiring and profits.

Question

Many business owners across Wokingham are struggling with immense financial burdens created by Labour’s hike to national insurance contributions. This policy has prevented many from hiring more staff and devastated their profits, stifling growth. What steps is the Minister taking to give businesses like those in Wokingham hope that this Government do have their back?

Answer from Dan Tomlinson (Exchequer Secretary to the Treasury)

The big picture on all three of those questions is that at last year’s Budget, the Government made the decision to increase national insurance in order to raise £20 billion. We have put that money into our public services, making sure that waiting lists have fallen pretty much every single month since the election. That means that we have delivered 4 million more appointments, many more people have been seen, and waiting lists are falling in my constituency and across the country. That is the difference that this Government are making: we are repairing the foundations, and making sure that we can look after people now and in the future.

Partly answered

How: Focusing On Public Services

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Q4 Daisy Cooper Lib Dem St Albans
Economy Taxation Business & Trade
Context

Statistics from the Office for National Statistics show that vacancies among small businesses have dropped by 18%, indicating a negative impact on employment and economic growth.

Question

The jobs tax has hit small businesses the hardest, with statistics showing that vacancies among small businesses alone have dropped by 18%. This proves that the jobs tax is not only crushing growth but also opportunity, especially in hospitality. Have Treasury Ministers commissioned their officials to look at any of the fairer revenue raisers we Liberal Democrats have put forward—such as taxes on banks, tech companies or gambling companies—in order that the Treasury could scrap the jobs tax at the next Budget?

Answer from Dan Tomlinson (Exchequer Secretary to the Treasury)

I will take this back to my team and look into it. We are always looking at ways to support small businesses and ensure that we have a fair and effective tax system in place.

Partly answered

How: Will Look Into

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Q5 Dan Tomlinson Lab Bolton West
Taxation Business & Trade
Context

The Liberal Democrats previously increased VAT on businesses. The current government has focused on reforming business rates to support retail, hospitality, and leisure industries.

Question

When the Liberal Democrats were last in government, they made the decision to increase VAT on businesses, whereas this Government are doing all we can to reform business rates so that retail, hospitality and leisure industries can get the support that they need from the business rates system. The national insurance changes that were made last year protect the smallest businesses, with many seeing lower business rates or not seeing increases.

Answer from The Prime Minister (Rishi Sunak)

We have taken decisive action to support businesses, especially small ones. We reduced National Insurance contributions for millions of workers last year, benefiting many low-earning individuals, and we are committed to further reforms to business rates to ensure that retail, hospitality and leisure industries receive the necessary support.

Answered
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