Commenting in response of the statement by the Prime Minister, on the increase in National Insurance Contributions, Make UK said:
"Industry fully supports the need to increase funding to the NHS and social care which is one of the most important issues we face as a society. However, an increase in National Insurance is not just a tax on employers but also employees. Putting a tax on jobs and workers at a time when Government is pulling the furlough scheme is ill-timed as well as illogical."
“Economic history tells us that job cuts are most likely when the economy starts to open again after a downturn because firms need the capital to reset. After witnessing large scale redundancies at the height of the pandemic and the plug being pulled on the furlough scheme, Government should be putting in place measures to protect jobs and incentivise recruitment. An increase to NI would have the opposite effect. As such Government must examine others streams of raising revenue ; we need to nurture growth not put an anchor on recovery."