‘Worrying’ inflation increase shows need for NICs delay

New statistics from the ONS showed that inflation in the year to January 2025 was 3%, an increase from 2.5% in the year to December 2024.

Commenting on today’s inflation figures, Kate Nicholls, Chief Executive of UKHospitality, said: “This a worrying jump in inflation and should act as a stark warning of what is to come if the Government persists with its plan to inflict £3.4 billion of cost on hospitality businesses in April.

“Venues are already being forced to put up prices in preparation for the increases and will undoubtedly continue to do so, as businesses have reached the limit of what they can absorb.

“Avoiding this is simple – delay the regressive changes to the employer NICs threshold, thereby allowing hospitality businesses to continue on a path of growth.

“As top contributors to economic growth in November and December, it’s clear hospitality is a solution to help the Government grow its way out of potential stagflation.”