- Employer National Insurance Contributions (NICs) increased by 1.2 percentage points to 15 per cent in the UK, impacting earnings above £5,000.
- Businesses, particularly in the hospitality sector, warn this "jobs tax" could lead to price increases, reduced staff hours, and job losses.
- The NICs rise comes after a 6.7 per cent minimum wage increase, creating a combined impact that businesses say will hinder job creation.
- Chancellor Rachel Reeves defended the tax increase as necessary to raise £25 billion annually by 2029.
- Opposition parties criticized the move, calling it a "hammer blow" to businesses and urging the government to find alternative funding sources.
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