Service Industries: Employers' Contributions
The question
To ask the Secretary of State for Business and Trade, what recent assessment he has made of the potential impact of the increase in National Insurance contributions on the services sector.
Answered by Gareth Thomas
An assessment of the changes to Employers’ National Insurance has been published by HMRC in their Tax Information and Impact Note, including impacts on the exchequer, the economy, individuals, households and families, equalities, and businesses including civil society organisations, alongside details on monitoring and evaluation. Tax information and impact notes - GOV.UK
The government is protecting the smallest businesses from changes to Employer National Insurance Contributions (NICs) by increasing the Employment Allowance to £10,500. This means that in 2025-26, 865,000 employers (43%) will pay no NICs at all. We are reforming business rates and protecting the smallest properties by freezing the small business multiplier in 2025-26, protecting over a million properties from inflationary bill increases.
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