Small Businesses: Employers' Contributions
The question
To ask the Secretary of State for Business and Trade, what discussions his Department has had with the Federation of Small Businesses on the impact of increased employer National Insurance Contributions.
Answered by Gareth Thomas
This government regularly engages with stakeholders including the Federation of Small Businesses to discuss the potential impacts of relevant policies.
In taking difficult decisions to address issues with public finances, the Government increased employer National Insurance Contributions (NICs) while lowering the per-employee threshold. Government has protected small businesses by raising the Employment Allowance from £5,000 to £10,500. Consequently, 865,000 employers will pay no NICs this year, and over half will gain or see no change. While addressing fiscal challenges, the measure will help to alleviate the burden on the smaller businesses.
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