National insurance rise 'set to squeeze budgets', warns CBI

31 Jan 2022

The Confederation of British Industry (CBI) has warned the government that the planned rise in national insurance will squeeze budgets and affect economic growth.

The rise will see employers, employees and the self-employed pay 1.25p more in the pound from April 2022. After this time, the extra tax will be collected as part of the new Health and Social Care Levy.

Prime Minister Boris Johnson and Chancellor Rishi Sunak recently confirmed the rise, stating that it 'must go ahead'.

The CBI said that the rise risks 'curtailing growth at a critical moment in the recovery' from the coronavirus (COVID-19) pandemic.

A spokesperson for the CBI said: 'If the government goes ahead as planned, then it is incumbent on them to use the March Budget to bring forward more ambitious plans to raise the longer-term growth potential of the economy.'

Accessibility | Disclaimer | Terms of Business | Privacy | Help | Site map |

© 2022 Gibbons Mannington & Phipps LLP. All rights reserved.

We use cookies on this website, you can find more information about cookies here.

Gibbons Mannington & Phipps LLP, 20 Eversley Road, Bexhill-on-Sea, East Sussex TN40 1HE
Gibbons Mannington & Phipps LLP, 24 Landgate, Rye, East Sussex TN31 7LJ
Gibbons Mannington & Phipps LLP, 82 High Street, Tenterden, Kent TN30 6JG

GMP Audit Limited, 20 Eversley Road, Bexhill-on-Sea, East Sussex, TN40 1HE

QuickbooksSage