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Retail and hospitality leaders today warned against large-scale job losses and cuts to investment after the national insurance increase.
The increase in employer -Nic’s from 13.8 percent to 15 percent, along with the lowering of the government’s salary threshold, which starts paying Companies Nic’s, expressed concern.
Retailers are particularly concerned about the impact on part -time rental plans as soon as the changes come into effect today.
The increased cost of staff employed can lead to a reduction in available positions, which may affect jobs within the sector.
The hospitality industry also feels the pressure. The head of a large bar group revealed that investment plans were scaled back to take up the rising costs.
This indicates that planned extensions, renovations or other improvements can be delayed or canceled due to the NICS hike. The joint impact of these changes can have significant consequences for the retail and hospitality sectors, which may affect the employment levels and future growth.
The fresh tax increase comes days after businesses with an increase of 6.7 percent were hit in the national minimum wage.
Many street firms also faced higher costs as a result of an increase in business rates due to a reduction in the current discount for over 250,000 retail, hospitality and recreational firms.
The British Retail Consortium (BRC) said changes to Nic’s and wages will cost another £ 5bn the following year.
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It is said to cost stores 10 percent more to employ workers due to the changes, and 13 percent higher for part -time staff.
BRC CEO Helen Dickinson said: “A recent recording of directors for retail financing showed that half was planning to reduce hours and workers as a direct result of the Nic hike from the employer.
‘It will be part -time work that gets the biggest hit.
“Part -time retail jobs have hit their lowest level since the records began in 1996, and have fallen by 200,000 over the past seven years.
“While the government’s welfare reforms are aimed at raising the numbers in the work, this week’s cost increases will kick the ladder away for many people who only get their first foothold.”
Meanwhile, the CEO of bar giant Greene King said its investment plans would be affected as a result of the weakening of greater costs than expected after the October budget.
Nick Mackenzie told the PA news agency: ‘Everyone in the industry stands in front of a barrage of costs they hit at the same time, with the minimum wage increase, NICs, business rates.
“We are still investing a lot, but there are areas where we have hampered our investment plans, because we must be wise for managing this cost.”
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