Tim Farron calls on ministers to scrap National Insurance tax rise

On the floor of the House of Commons this afternoon, local MP Tim Farron warned that the Government’s increase in National Insurance Contributions is leading to businesses in Cumbria having to cut staff.

According to a recent study by Cumbria Tourism, changes to business rates, a rise in Employer National Insurance contributions and other measures in last Autumn’s budget have led to many businesses being local forced to make tough choices.

Their survey of Cumbrian hospitality businesses found that:

 

-         38% will try to absorb the costs

-         37% will cut staff

-         34% will freeze or reduce planned pay rises

-         33% will halt recruitment

-         17% plan to reduce opening hours

-         14% are thinking about selling up

Speaking during Work and Pension Questions in Parliament, Tim said: “Does the minister accept that the Government's increase in National Insurance Contributions has had a negative impact on employment levels in communities like ours?

“Cumbria Tourism assesses that 37% of its businesses have cut staff as a consequence; 33% freezing recruitment.

“Is it possible that the government will actually get less in from this tax rise than it expects, and in doing so, do grave harm to the Cumbrian tourism economy and many other parts of our economy?”

Responding, the Minister for Employment, Alison McGovern said: “I speak to many businesses, and in fact, since coming into office the Secretary of State, and I have totally changed our approach with employers.

“And that new approach includes a partnership with UKHospitality, providing specific employment support to get into hospitality and a Hospitality Passport so that people can evidence their qualifications, which we believe and UKHospitality think can help those people who really need a chance in life to get a good start in the hospitality sector.”