Businesses urge Sunak to delay ‘ill-timed and illogical’ NI rise
Rishi Sunak is facing renewed pressure from business leaders to delay a planned £12bn rise in national insurance, amid warnings over soaring costs for companies and households as the Russian invasion of Ukraine drives up inflation.
The manufacturing trade body Make UK, which represents 20,000 firms of all sizes across the country, said the tax hike planned for April should be pushed back until the UK economy is in a stronger position. It warned the government that pressing ahead would risk firms slamming the brakes on recruitment and putting the economic recovery from Covid at risk.
With concerns mounting over the fallout from Vladimir Putin ordering his troops into Ukraine last week, the business lobby group said now was not the time to add further self-imposed costs on companies.
“The proposed increase remains illogical and will be even more ill-timed given how circumstances have rapidly changed since it was announced,” said Stephen Phipson, the chief executive of Make UK.
“The cost burden on business is continuing to escalate and, while some of these increases are due to global events, government must avoid adding shooting business in the foot by an entirely self-imposed decision.”
According to a survey of almost 300 manufacturing firms by Make UK, as many as three in five said the tax rise would have a moderate or significant impact on their hiring intentions. Almost three-quarters said they would pass on, or would be very likely to pass on, the rise in their costs to customers in the form of higher prices for their products and services.
It comes as the fighting in Ukraine drives up global energy prices, and as the conflict and western economic sanctions unleashed in response lead to tensions over the supply of Russian
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