Reader Reaction: Is the National Insurance increase actually a tax on jobs?

After the BCC and CIPD said an NI increase would damage economic recovery, we ask if you agree


Jason Cromack, Lateral Group
From a personal and professional point of view, I believe National Insurance (NI) was pitched at about the right level. The increase will definitely have an impact on Lateral Group. While the 1% may not seem much, for a business of our size, it means we will have to deliver a 4% uplift of top line sales just to stand still. Add to that the incremental costs needed to reach those sales and you’re looking at a figure substantially higher. The increase in NI is not going to cause us to halt our recruitment plans. We recruit in line with our clients’ needs and higher tax won’t change how we operate as a business. For us, it’s about getting the best people and nurturing their careers.

Quen Baum, managing director, Morgana
As far as we are concerned, we  employ the number of employees we need to and we always will. You can refer to it as a tax on jobs, but I refer to it as a tax on business. We estimate that 16-18% is added on to a salary to cover pension, NI and other payments. In the same way that VAT has to be paid, it is a fact that the government needs to raise money and it is a fact of life that they may increase the costs. I would never not employ someone because of an associated cost. If a job is worth doing then you need somebody to do it.

Paul Holohan, chief executive, Richmond Capital Partners
Any increase in costs inflicted on our print industry – or any other industry – can only be detrimental in the current economic situation.  While we have to accept that unpleasant measures have to be taken because of the financial situation the country is in, the government ought to be stimulating industry, and therefore employment, not taxing jobs and damaging employment prospects. The print industry has suffered more than most over recent years and could really do without additional burdens on its often fragile profits.

Tim Lance, sales director, X1
The NI rise of 1% can only damage what is a fragile recovery of the UK economy. It has already made us look at the staff levels we have and we are negotiating with them at present to ensure we use their time efficiently. It will impact on our wage reviews this year – no question about that. Despite this additional ‘tax rise’ of which there may be many more, we still have to sell our products and services. So we all must get closer to our clients, understand them and work with them to help them spend the money they do have wisely. Will it be easy – no – but this is where we are.