Government Urged to Rethink Employer NICs as Economic Warning Signs Flash

UKHospitality has warned that the devastating impact of increases to employers’ National Insurance Contributions (NICs) is now being revealed, with the sector already seeing falling job vacancies and a 0.3% drop in GDP for April.

Andrew Crook, President of the NFFF, responded to the news, saying: “Rather than continually increasing the burden on businesses, the government needs to give us the headroom to grow and play our part in economic recovery.”

UKHospitality Chief Executive Kate Nicholls added that the latest figures confirm predictions made earlier this year: “It’s clear that economic warning signs are flashing and the impact of April’s cost increases are having exactly the impact that was predicted. GDP figures can be volatile, but an immediate shrinking of the economy and more than 100,000 jobs lost in just a month shows that the huge increase to employers’ NICs is putting the brakes on growth.”

She stressed that while hospitality businesses are doing everything they can to trade through the pressure, the sector needs proper backing: “The economy only grows when hospitality is strong. The government needs to take these warning signs seriously and urgently review and reverse the changes to national insurance contributions, while bringing forward clear plans to empower hospitality and the high street.”