THE Government’s decision to increase Employers' National Insurance Contributions (NICs) from 13.8 percent to 15 percent, while lowering the threshold from £9,100 to £5,000, is a hammer blow to small businesses.
Nowhere is this more damaging than in our region, where independent shops, hospitality venues, and farms are the backbone of our local economy. These businesses are already struggling, and Labour’s tax hikes are making a bad situation worse.
For many businesses, especially in retail and hospitality, the festive period is a lifeline. It’s the time when they take on extra staff to meet demand, ensuring their survival for the quieter months ahead. Farms also rely on seasonal workers to plant and harvest crops.
But by slashing the NIC threshold, Labour has ensured that these temporary hires will now cost businesses more, forcing many to cut jobs or scale back their operations.
A survey by the British Chambers of Commerce found that 81 percent of businesses have been hit by the NIC increase, leading to higher prices for customers, reduced investment, and squeezed staffing levels. Local businesses are already grappling with soaring energy bills, supply chain disruptions, and the end of essential government support measures. The Federation of Small Businesses has warned that the added tax burden is pushing many small firms in Hampshire to the brink, with some facing closure altogether.
The consequences are painfully clear. There will be fewer seasonal jobs for those who depend on them for extra income. Local pubs and restaurants have already told me they are raising prices again; yet another cost pressure for families already struggling with the rising cost of living. Independent retailers, still reeling from inflation and high business rates, are now being hit with another tax increase just when they need relief the most.
This isn’t just about numbers on a spreadsheet, it’s about real businesses, real jobs, and real people. Labour’s policies are stifling growth and punishing the very people who drive our local economy. Entrepreneurs create employment and keep our high streets alive. They deserve support, not endless new taxes and red tape.
As your Conservative MP, I am fighting to get these damaging tax hikes reversed. I will continue to challenge Labour’s anti-business policies and push for measures that genuinely support job creation and investment. That means fighting against disastrous ideas like the Family Farm Tax and making sure local business owners have a voice in Parliament.
Our economy prospers when businesses are free to grow, innovate, and create jobs; not when they are suffocated by rising costs. Labour may not understand that, but coming from a family of small business owners, I do. And I will continue to stand up for the businesses and families that make our community thrive.