North West Norfolk MP James Wild raises concerns regarding upcoming National Insurance increases at Treasury questions in House of Commons
A West Norfolk MP has raised concerns regarding upcoming National Insurance ‘Jobs Tax’ increases this week.
James Wild shared his fears about the government’s plans and the impact they may have on the hospitality sector and, in particular, lower-paid and part-time workers, during Treasury questions in the House of Commons.
It comes after the North West Norfolk MP’s recent Small Business Survey, which he said highlighted how business owners are “already feeling the effects” of the forthcoming changes with National Insurance increases and labour costs being prominent issues.
The changes, due to take effect from April, will raise employer National Insurance contributions from 13.8% to 15%, while lowering the threshold for payments from £9,100 to £5,000 annually.
“As a result, an additional 750,000 jobs in the hospitality sector will be subject to employer National Insurance for the first time,” a spokesperson for Mr Wild said.
“UK Hospitality has estimated this will cost businesses an estimated £1 billion.”
Mr Wild said that the changes were particularly concerning for North West Norfolk where hospitality constitutes over a fifth of all jobs.
Speaking in the House of Commons, Mr Wild said: “Even before Labour’s jobs tax comes into effect, we can already see the damage it is causing.
“Three-quarters of a million jobs in hospitality will now be subject to employer National Insurance for the first time, costing businesses £1 billion.
“With major hospitality and retail businesses warning that lower-paid and part-time workers will suffer the most, will the Chancellor think again? Can the Minister at least commit that there will be no further increases in National Insurance during this Parliament?”
In response, James Murray MP, the Exchequer Secretary, said: “The businesses he referred to, like those in all sectors of the economy, benefit from the stability this government has brought.
“While we recognise that the changes to employer National Insurance contributions were tough, we anticipate the unemployment rate will fall to 4.1% next year and remain low until 2029.
“In total, the budget measures will lead to an increase in employment from 33.1 million to 34.3 million by 2029.”
In December 2024, Mr Wild voted against the so-called ‘Jobs Tax’, arguing it would lead to fewer jobs and lower wages for young people.
He has also raised concerns about the wider impact of budget measures on small businesses, including nearly doubling business rates for shops and hospitality venues.
