In January 2024, the then chancellor Jeremy Hunt implemented a cut in employee national insurance contributions. Four months later he announced a further reduction from 10% to 8% and even hinted that he was considering abolishing employee contributions altogether. It was the mother of all election bribes, costing the exchequer about 10bn a year. It was also entirely cynical, offered in the absolute confidence that the Tories would not be in office long enough to grapple with the consequences.
Directors said the outlook "remains challenging," blaming Reeves's decision to increase employer National Insurance contributions and cut the payment threshold. They warned that the "service-led nature" of hospitality meant the sector was being "severely impacted" by higher staffing costs, with nearly 90,000 hospitality jobs already lost nationwide since the October Budget.
Over 90% of employers think that the chancellor will place restrictions on pensions salary sacrifice schemes at the upcoming Autumn Budget, according to a new survey of mid-market businesses. Conducted by Censuswide for BDO, the survey found that almost half (49%) of C-suite respondents believe restrictions are 'quite likely' while 45% consider them 'very likely'. Only 6% see an equal chance either way, while less than one per cent think restrictions are unlikely.
"Stay alert: To avoid the deadline slipping your mind and passing you by, set a reminder ahead of the date to log into your PAYE account on the government website and check the amount you owe HMRC in National Insurance contributions. It's important that you pay the right amount, so check the figure carefully and ensure that your contribution has been calculated correctly, taking into consideration all of the benefits you declared."
The position remains the same, attempting to cover the vastly increased wage bill due to NIC rises, as well as other cost increases, without the ability to pass on to the customer, which has directly impacted recruitment and growth plans.
Vulnerable beneficiaries are being left without essential support as charities across the UK are forced to scale back services or halt expansion plans due to surging operational costs.
