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East Midlands Chamber News

Health and social care levy will blunt jobs growth at critical moment, says East Midlands Chamber

Commenting on the Government’s proposed increases in national insurance and dividend tax, East Midlands Chamber (Derbyshire, Nottinghamshire, Leicestershire) chief executive Scott Knowles said: “A rise in national insurance contributions of both employers and employees risks blunting jobs growth at an absolutely critical time. Companies have been hammered by 18 months of Covid-related restrictions, with many building up debt burdens and struggling for cash flow.

“This rise could impact the wider economic recovery by landing significant costs on firms when they are already facing a raft of new cost pressures, and dampen the entrepreneurial spirit they need to drive the return to sustained growth.

“In the East Midlands, confidence has returned strongly since restrictions were eased, with our most recent Quarterly Economic Survey for Q2 2021 finding a net 41% of firms were anticipating growth.

“This encourages businesses to invest in recruitment, training, facilities and equipment – ultimately generating prosperity through creating jobs and supporting communities.

“The focus should be on creating the best possible environment for them to continue growing and thriving so they can sustainably deliver the tax revenue needed to support our public services and the wider economy – not adding to their financial burden.”