UKH calls on gov to rethink approach to NIC changes
It comes as revised figures from the Office for National Statistics yesterday showed that the UK economy had zero growth between July and September
UKHospitality has called on the government to “rethink its approach” to upcoming changes to National Insurance contributions, warning that proper consultation and engagement is needed before the changes are implemented next year. It comes as revised figures from the Office for National Statistics yesterday showed that the UK economy had zero growth between July and September.
Growth from July to September was revised down from 0.1% to zero by the ONS.
In light of this, the Confederation of British Industry (CBI) this week warned that the UK economy is headed for “the worst of all worlds” as business activity is set to decline at the start of the new year.
Kate Nicholls, CEO of UKHospitality, also warned of the “fragile” state of the economy, and said: “These revised growth figures confirm what we already suspected – that the economy is in a fragile place and in dire need of growth.
“But with business confidence already plummeting and a third of hospitality businesses operating at or below break even, the planned changes to employer National Insurance Contributions will make generating economic growth even more difficult.”
She added: “Hospitality is hit disproportionately hard by the changes, particularly the lowering of the threshold, and the £3.4bn in costs hitting the sector in April will impact jobs, investment and business viability.
“That’s why we urgently need the Government to rethink its approach. Delaying these changes to allow for proper consultation and engagement with businesses is much needed to protect hard-working venues and team members.”
Alpesh Paleja, CBI interim deputy chief economist, said: “There is little festive cheer in our latest surveys, which suggest that the economy is headed for the worst of all worlds – firms expect to reduce both output and hiring, and price growth expectations are getting firmer. Businesses continue to cite the impact of measures announced in the Budget – particularly the rise in employer NICs – exacerbating an already tepid demand environment.
