Business: Recruitment
The question
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of changes to employer National Insurance contributions on recruitment by businesses.
Answered by James Murray
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer NICs. The TIIN sets out the impact of the policy on the exchequer, the economic impacts of the policy, and the impacts on individuals, businesses, and civil society organisations, as well as an overview of the equality impacts.
The Office for Budget Responsibility also published the Economic and Fiscal Outlook (EFO), with a detailed forecast of the economy and public finances.
We acknowledge that, as the OBR set out, this measure will have an impact on labour supply. With all policies considered, the OBR expect the employment level to increase from 33.6 million in 2024 to 34.8 million in 2029.
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