UKHospitality hails National Insurance reverse
UKHospitality says the 1.25% National Insurance reverse to be announced in the mini-Budget today is ‘excellent news’ for the sector and customers.
Scrapping the increase announced just six-months-ago means hospitality businesses will save an average £9,600 that they can plough into growth and development.
Revealed by the Chancellor ahead of his mini-Budget, the change will take effect from 6 November, and means more than 900,000 businesses across all sectors will enjoy a tax reduction of close to £10,000,
Around 28m people will save an average £330-per-year.
UKHospitality Chief Executive Kate Nicholls said: “Hot on the heels of government support for businesses facing rising energy costs, cutting employer NI contributions is more excellent news for the hospitality sector.”
It will help businesses reduce their costs as they attempt to return to profitability.”
“Cutting employee NICs is a great way to ensure people keep more of their money, primarily so that they’re able to pay their bills, and then to enjoy affordable visiting hospitality venues.”
UKHospitality has long campaigned for an employer NICs regime that supports job creation.
The 1.25% NI rise had been introduced by former Chancellor Rishi Sunak in April.
Separately, UKHospitality is urging further Government support for the industry through a VAT rate cut and the reform of business rates.