UK businesses warn national insurance hike will hit jobs
September 8, 2021, 6:03 am

UK businesses warn national insurance hike will hit jobs

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The Headtopics reported according to Reuters, British business organisations criticised Prime Minister Boris Johnson's plans to increase taxes to pay for health and social care reform, saying they added to the burden on firms struggling due to the COVID -19 pandemic and would cost jobs.

The announcement received a cool reception from businesses, who were asked to pay a 1.25 percentage-point increase to a payroll tax known as National Insurance (NI).

Suren Thiru, Head of Economics at the British Chambers of Commerce, said: "Businesses strongly oppose a rise in national insurance contributions as it will be a drag anchor on jobs growth at an absolutely crucial time."

"This rise will impact the wider economic recovery by landing significant costs on firms when they are already facing a raft of new cost pressures and dampen the entrepreneurial spirit needed to drive the recovery."

Johnson said, but the government said it was right that businesses should make a contribution given that they benefit from the health and social care system via their employees. Big businesses would bear the largest burden of the tax rise.

Sunak said on Twitter, government document published alongside the announcement said 70% of the money raised from businesses will come from the largest 1% of companies and around 40% of businesses would not be affected at all by the levy."Those earning more pay more and larger businesses also contribute."

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The tax increases also included a 1.25 percentage point rise in dividend tax rates which stands to affect business owners and investors who rely on dividend income.Manufacturers' group Make UK said the measures would hinder Britain's recovery from its worst economic slump in more than 300 years in 2020.

Chief Executive Stephen Phipson said: "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".

Reporting by William James and David Milliken Editing by William SchombergOur Standards:More from ReutersSign up for our newsletterSubscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.

Source: headtopics

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, has sponsored the BuildHer CityHack 2025 Hackathon, a two-day event spearheaded by the College of Engineering and Technology at the Royal University for Women (RUW).
Aimed at secondary school students, the event brought together a distinguished group of academic professionals and technology experts to mentor and inspire young participants.
More than 100 high school students from across the Kingdom of Bahrain took part in the hackathon, which featured an intensive programme of training workshops and hands-on sessions. These activities were tailored to enhance participants’ critical thinking, collaborative problem-solving, and team-building capabilities, while also encouraging the development of practical and sustainable solutions to contemporary challenges using modern technological tools.
BENEFIT’s Chief Executive Mr. Abdulwahed AlJanahi, commented: “Our support for this educational hackathon reflects our long-term strategic vision to nurture the talents of emerging national youth and empower the next generation of accomplished female leaders in technology. By fostering creativity and innovation, we aim to contribute meaningfully to Bahrain’s comprehensive development goals and align with the aspirations outlined in the Kingdom’s Vision 2030—an ambition in which BENEFIT plays a central role.”
Professor Riyadh Yousif Hamzah, President of the Royal University for Women, commented: “This initiative reflects our commitment to advancing women in STEM fields. We're cultivating a generation of creative, solution-driven female leaders who will drive national development. Our partnership with BENEFIT exemplifies the powerful synergy between academia and private sector in supporting educational innovation.”
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For his part, Dr. Humam ElAgha, Acting Dean of the College of Engineering and Technology at the University, said: “BuildHer CityHack 2025 embodies our hands-on approach to education. By tackling real-world problems through creative thinking and sustainable solutions, we're preparing women to thrive in the knowledge economy – a cornerstone of the University's vision.”