National insurance rise ‘set to squeeze budgets’, warns CBI

8th February 2022 | News

The Confederation of British Industry (CBI) has warned the government that the planned rise in national insurance will squeeze budgets and affect economic growth.

The rise will see employers, employees and the self-employed pay 1.25p more in the pound from April 2022. From April 2023, the extra tax will be collected as part of the new Health and Social Care Levy.

Prime Minister Boris Johnson and Chancellor Rishi Sunak recently confirmed the rise, stating that it ‘must go ahead’.

The CBI said that the rise risks ‘curtailing growth at a critical moment in the recovery‘ from the coronavirus (COVID-19) pandemic.

A spokesperson for the CBI said:

 ‘If the government goes ahead as planned, then it is incumbent on them to use the March Budget to bring forward more ambitious plans to raise the longer-term growth potential of the economy.’

Internet link: BBC News website

Williamson & Croft is a market leading accountancy, advisory and tax firm with particular specialisms in property, construction, retail, digital and creative, technology and professional services.

Global Association

News

Land Remediation Relief: How we can help accountants and their clients

Clients look for more than accounting services from their trusted accountants. Timely advice, recommendations, wider service offerings, or access to a network of trusted specialists can make a significant difference to your business and improve your professional...

The Register of Overseas Entities: It’s time to update

As of 1 August 2022, the Register of Overseas Entities (ROE) has been operational under the Economic Crime (Transparency and Enforcement) Act 2022 (ECTEA) for over a year. This initiative aims to combat global economic crime by enhancing transparency regarding the...

© 2023 Williamson & Croft