Britain's hospitality and retail sectors brace for a significant tax hike on National Insurance contributions and a rise in the minimum wage. Industry leaders are expressing concerns over potential job losses and rising prices. Many businesses implement cost-cutting measures, including cautious staffing levels to manage the increased financial strain. The NICs are set to rise from 13.8% to 15%, while the minimum wage will also see a substantial jump. These changes could push operating costs for employers significantly higher, especially given previous wage growth in these categories.
It's about battening down the hatches. We're being very cautious with headcount and, ultimately, it could force up prices just to keep the doors open.
We're looking at a 10% increase in labour costs per person. If you have 10 full-time staff, that mounts up significantly.
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