Uncertainty over National Insurance increases

Business owners across the pub and bar industry could be facing further financial woes, as rumours over an increase in National Insurance Contributions spread across the trade.

Having previously side-stepped questions on the topic, prime minister Sir Keir Starmer didn't rule out the potential tax increase for employers when speaking in a BBC Breakfast interview on 15 October. 

The prime minister has also said that he won't comment on Budget speculation ahead of chancellor Rachel Reeves' delivery on 30 October.

While the Labour manifesto ruled out tax increases for working people, National Insurance Contributions are paid by the employer rather than the employee, with many guessing that this means an increase is on the way.

Currently, employers currently pay a National Insurance rate of 13.8% on employee earnings above £175 per week.

A tax on jobs

"Labour market data released today shows that vacancies in hospitality remain stubbornly high," says Kate Nicholls, chief executive of UKHospitality. "What this clearly demonstrates is the need for government to incentivise sectors like hospitality to create jobs and support employment. 

"The rumoured increase to employer National Insurance Contributions would do the opposite – a tax on jobs. An increase would particularly hammer sectors like hospitality, where staffing costs are the biggest business expense."

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