Business body criticises National Insurance rise as another blow to Hucknall and Bulwell firms
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National insurance has risen from from 12 per cent to 13.25 per cent and the East Midlands Chamber (Derbyshire, Nottinghamshire, Leicestershire) says the hike just adds to the costs that firms are currently facing.
Scott Knowles, the chamber’s chief executive, said: “The national insurance hike is yet another significant addition to the spiraling costs that have been hitting businesses for a long time now.
“The timing could hardly be worse, given that many organisations are struggling with the rising costs of raw materials, energy, fuel and staffing.
"Indeed, two-thirds of our region’s businesses in our quarterly economic survey for quarter one told us they will have to increase their own prices in the coming quarter to off-set the additional costs.
“Skills shortages across many sectors are hampering firms – while 63 per cent of businesses attempted to recruit in the first quarter of the year, four in five of this cohort encountered problems with filling vacancies – and has led to many having to pay more for the skilled labour they do manage to find.
“Raising national insurance during a very real cost of doing business crisis adds yet another price pressure to companies that are already being squeezed at the margins – particularly in the past week amid the energy price cap rise and restoration of 20 per cent VAT for the hospitality and tourism sectors.
“Without meaningful Government support, this will ultimately affect their ability to invest, grow and create new jobs.”