Local businesses ‘on the brink’ due to NI rise warns North Devon MP

North Devon’s MP has slammed a ‘job tax’ that could force local businesses to close and will leave workers worse off.

The rise in National Insurance contributions from employers’ has now come into force after being unveiled in the Chancellor’s Spring Statement and Ian Rome has claimed it could push North Devon companies to the brink.

Research by the Liberal Democrats has is claiming employees in the region face an estimated hit of almost £2,253 by the end of the decade, as the tax gets passed down to them in the form of lower wages in real terms.

This was backed up by the OBR (Office for Budget Responsibility) report made during Chancellor Rachel Reeves’ Spring Statement to Parliament which said 76% of the rise in employers' national insurance would be passed down to workers.

Mr Roome said he had been approached by numerous local businesses deeply concerned the tax could push them to the financial brink and potentially force closures.

He said several hospitality businesses described the strain as ‘unsustainable’, especially when combined with existing overheads and rising energy costs.

He has called on the Chancellor to scrap the tax hike and to overhaul the ‘broken’ business rates system.

Mr Roome said: “The Chancellor’s jobs tax is setting already stretched household finances up for another battering right in the middle of a cost of living crisis.

“This Labour government is now risking a spate of boarded up shop fronts on our much loved high streets in North Devon, leaving local businesses on the brink of closure.

"The Government cannot go on pretending that their jobs tax won’t hit people’s pockets. Our town centres and hard-working business owners will bear the brunt of this crushing decision.”

Has your business been affected by the rise in NI contributions? Will you have to raise prices or cut staff? We’d welcome your thoughts – email us at newsdesk@northdevongazette.co.uk