Hospitality firms to incur 1bn costs from employer NICs on 774,000 more workers'

The hospitality industry is bracing for an extra £1 billion in costs starting this April as 774,000 workers become eligible for employer national insurance contributions. UKHospitality, representing thousands of businesses in the sector, is urging the government to reconsider the tax changes from Rachel Reeves's budget. This change will significantly cut the number of non-eligible workers from 1.2 million to 450,000, contributing to rising business costs alongside £2.4 billion in wage increases. Experts warn this could lead to job losses, higher prices, and decreased investment in the hospitality sector, pointing to the serious implications for communities and workers.

The hospitality industry faces an additional £1 billion in costs due to new employer national insurance contributions, risking jobs and businesses for 774,000 workers.

UKHospitality urges the government to reform the employer NIC changes from Rachel Reeves's October budget to protect jobs amidst increasing financial burdens in the sector.

Kate Nicholls, chief executive of UKHospitality, emphasized the unprecedented nature of these tax changes, stating they will force businesses to scale back investments and alter hiring practices.

The proposed changes could push businesses to abandon investments, reduce hiring, or increase prices, jeopardizing the recently promised growth within the hospitality industry.

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