Employers' Contributions: Small Businesses
The question
To ask the Secretary of State for Scotland, with reference to paragraph 2.40 of the Autumn Budget 2024, HC 295, published on 30 October 2024, what assessment he has made with Cabinet colleagues of the potential impact of the proposed increase in the rate of employers' National Insurance Contributions on (a) small businesses and (b) independently owned businesses in Scotland.
Answered by Ian Murray
This Government inherited a £22 billion black hole in the nation’s finances. The action we are taking in this Budget restores economic stability so we can invest in the future.
The government will protect the smallest businesses by increasing the Employment Allowance to £10,500. This means that next year around 43% of UK employers will pay no employer NICs.
The Federation for Small Businesses (FSB) has called for an increase to the Employment Allowance, and for it to be indexed to the National Living Wage. We have met the FSB’s ask for the Employment Allowance to cover 4 National Living Wage employees in 2025/26.
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