NIC hike to hit working people

Barclays: Labour’s NICs hike will hit working people

Economists at Barclays have warned that Labour’s increase in NICs for employers, and a reduction in the threshold at which employers start paying the tax, will reduce living standards for workers. In a note to clients, analysts said: “We expect the additional costs implied by changes to employer NICs to lead to lower real incomes, through a combination of higher inflation and lower wages.” The alert comes as business leaders across the economy protest the hike - John Longworth, chairman of the Independent Business Network, said Sir Keir Starmer has “betrayed himself and the nation with his first Budget” while Alex Veitch, director of policy at the British Chambers of Commerce added that businesses were now reassessing their plans around investment and recruitment in the short-term.