Businesses warn that double whammy of National Insurance hike and new workers’ rights will damage growth [Video]

20:46 EDT 15 Oct 2024, updated 20:49 EDT 15 Oct 2024

Businesses yesterday sounded the alarm over Labour‘s double whammy of tax hikes and new workers’ rights – warning they will threaten hiring and damage growth.

It came amid growing fears of an increase in employer national insurance contributions (NICs) in this month’s Budget.

In a growing backlash, companies and business groups said any such rise would come back to bite working people. Such a tax raid is likely be passed on to employees in the form of smaller pay increases.

The last time employer NICs were put up, in 2021, the independent Office for Budget Responsibility predicted that would happen.

It calculated that 80 per cent of the hike would be shouldered by workers in the form of lower wages and 20 per cent passed on to consumers via higher prices.