Employer NICs rethink needed to unlock economic growth

Kate Nicholls, Chief Executive of UKHospitality, said: “These lacklustre growth figures make it clear that the UK economy is still in a very fragile place. How the Government approaches the economy and consumer confidence going forwards, in both its policy and its language, will matter enormously.

“Its policy to inflict £3.4 billion in costs on hospitality businesses in April is already having a negative impact on decision-making on investment and jobs, which will no doubt stifle economic growth once again.

“Hospitality has proven time and again that it can be an engine for growth, and was forecast to grow 6% year-on-year. That potential is still there, if the Government rethinks its changes to employer NICs and takes a high street-first approach to growth.

“Hospitality is disproportionately hit by these changes, as a significant employer of part-time staff, and we’d urge the Government to either create a new employer NICs band for lower earners or implement an exemption for lower band taxpayers working fewer than 20 hours per week.

“Either of those measures would soften the blow for businesses and target support for part-time and lower paid workers.”