Hospitality Industry: Employers' Contributions
The question
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of exempting hospitality businesses from proposed changes to employer National Insurance contributions.
Answered by James Murray
The Government has taken a number of difficult but necessary decisions on tax, welfare, and spending to fix the public finances, fund public services, and restore economic stability after the situation we inherited from the previous administration.
The Government has protected the smallest businesses from the impact of the increase to employer National Insurance by increasing the Employment Allowance from £5,000 to £10,500, which means that 865,000 employers will pay no employer NICs at all next year.
More than half of employers will see no change or will gain overall from this package and eligible employers will be able to employ up to four full-time workers on the National Living Wage and pay no employer NICs.
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