UKHospitality has welcomed the Conservative pledge to overhaul business rates and cut employer National Insurance Contributions.
Ahead of the Prime Minister’s speech to business leaders today, it has been announced that a Conservative Government would undertake a fundamental review of business rates and introduce reductions in NICs.
UKHospitality has long been calling for business rates reform and for cutting NICs to help raise wages.
CEO Kate Nicholls responded to the announcement, saying, “We very much welcome the pro-business sentiment and particularly the focus on employment and property taxes - the two biggest hurdles holding back hospitality growth and investment. We are particularly pleased to see reform of business rates being made a priority.
“For too long, the debate about business taxes in this country has focused solely on corporation tax levels but that only makes a material difference to companies who are making a profit. Hospitality has seen a third wiped off its profits due to increases in rates and employment taxes so this is a long overdue and very welcome redressing of the balance to free up businesses to invest.
“It is also refreshing to hear proposals on employers’ NIC contributions, with today’s announcement being a step in the right direction. If the Conservatives, or any future Government, wants to really support businesses, without reducing take-home pay, then they should consider extending this employer NIC cut to include the first £12,000 of earnings.”
