National Insurance: Rise will squeeze budgets - CBI

A planned rise in National Insurance from April will "Unquestionably" place a further squeeze" on budgets and risk stunting economic growth, the CBI business group has warned. The Federation of Small Businesses said the rise could "spell the end for a lot of small firms". Prime Minister Boris Johnson and Chancellor Rishi Sunak wrote in the Sunday Times to confirm the £12bn rise, which they said was "the right plan" and "must go ahead". Elsewhere, the boss of the Federation of Small Businesses, said its members had warned they would have "no choice but to increase prices, reduce wages or let staff go", if the government proceeded as planned, due to other increases in the National Living Wage and business rates. Sarah McClinton, vice-president of Association of Directors of Adult Social Services, said it was "essential that as a society we fund adult social care in the longer term", adding more tax needed to be assigned to social care.

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