Employment Costs and Hiring Hesitancy
BBC reporting notes that some businesses are holding back on recruitment due to the rising costs of taking on staff. Tim Randell, who runs Links Publishing, stated to the BBC that he has two open positions he wants to fill to grow his business, but is delaying hiring because of employment expenses. Businesses at the Devon Business Show told the BBC they have struggled over the past two years with increases in employers' National Insurance contributions and the National Minimum Wage.
Calls for Tax Relief and Sector Support
According to the BBC, industry figures are urging Chancellor John Healey to introduce measures to lower employment costs in his first Budget on Wednesday. Michelle Bunker of WGP Maintenance told the BBC she wants National Insurance contributions to go down, while Kevin Miller of Apex HR called for tax relief to help small businesses grow. Meanwhile, hospitality representatives including Pete Adams of the Moxy Hotel and Melanie Williams of the Duke of Cornwall Hotel told the BBC they support long-running campaigns to reduce VAT for pubs and restaurants from 20% to 10%. The BBC reports that HM Treasury stated the chancellor is providing breathing space through business rates cuts, a corporation tax cap, bill-limit support, and employer National Insurance relief for hiring under-21s and apprentices under 25, while noting that tax decisions are reserved for fiscal events.