Telford accountant Turas says NIC increase casts 'long shadow' over businesses
Telford-based Turas Accountants says yesterday’s Spring Statement will do "little to change the mood" in the business community.
Yesterday (March 26), Chancellor Rachel Reeves delivered her Spring Statement announcing changes to the benefits system and a clampdown on spending in government departments.
However there was no change of direction on plans to lower the threshold for employer National Insurance Contributions(NICs) which have been heavily criticised by businesses.
Helen Columb, who owns Turas Accountants in Telford, said changes to Employer National Insurance contributions coming into effect on April 6 had dominated the business agenda in recent months and set the tone for the coming financial year.
“The increase in NICs to 15 per cent and the cutting of the threshold at which employers start paying them to £5,000 has cast a long shadow on financial planning for the year ahead, and there was little in today’s statement to change that.
“It obviously makes it more expensive to employ people and has certainly had a chilling effect on growth and recruitment – the very things we need to be encouraging to help the economy move forward.
“Having committed to not raising taxes further in the wake of her November budget, the Chancellor has left herself with little wriggle room, and I think today’s statement reflects that.
“Without economic growth to generate extra revenue for the Exchequer, it has no option but to cut spending on some public services in order to balance the books.”
