Hospitality Industry: Employers' Contributions
The question
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential merits of introducing a lower rate of employer National Insurance contributions for businesses in the hospitality sector which employ a high proportion of part-time workers.
Answered by James Murray
The Government has taken difficult but necessary decisions to fix the public finances and create long-term stability in which businesses can invest and grow.
The Government decided to protect the smallest businesses from changes to employer National Insurance contributions by increasing the Employment Allowance from £5,000 to £10,500. This means that this year, 865,000 employers will pay no NICs at all, and more than half of all employers will either gain or will see no change. It means employers will be able to employ up to four full-time workers on the National Living Wage without paying employer NICs.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →