The Chancellor has given his Spring Statement today, setting out a number of measures including cutting fuel duty and confirming the increase in National Insurance is going ahead.
Responding to the statement, Neil Carberry, Chief Executive of the REC, said:
“Today’s Spring Statement comes after the announcement that inflation is at its highest for 30 years. There are also many tax rises coming into force next month, and the war in Ukraine is causing further uncertainty. Now is not the time to be raising National Insurance, the UK’s biggest business tax. Raising the threshold for employees is sensible and will help to soften the blow, but 60% of National Insurance is paid by businesses – this tax rise will place an extra heavy burden on them, especially in labour-intensive sectors like hospitality which are already struggling.
“The Chancellor’s cuts to fuel duty and business rates for retail, hospitality and leisure businesses are welcome. And his plan for incentivising business investment, including looking at the failed apprenticeship levy, sounds promising. But employers have been promised change before – this time, he has to deliver. It will require a real end to policy thinking being restricted to Whitehall. The recruitment industry is ready to come to the table and help government to ensure these new measures work.”
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