A planned increase in the national insurance of April, unquestionably, will put a little more squeeze of budgets and the growth of economic growth, the CBI business group has warned. The CBI said that the signatures were not supportive to the increase of taxes when it was announced for the first time, and not yet. The Small Business Federation (FSB) said the increase could spell the end for many small businesses. The Government has said that the increase will help erase the recoil of NHS. Prime Minister Boris Johnson and the Chancellor Rishi Sunak wrote on Sunday to confirm the increase of £ 12 billion, which was said to be the correct plan and must move on.
After that, the additional tax will be collected as a new health and social care tax. The changes will see that an employee at £ 20,000 per year paid an additional tax of £ 89, while someone at £ 50,000 will pay more £ 464 more. There are also concerns, the increase could contribute to the cost of living, with the budgets of households that are being squeezed by increasing energy prices. The CBI, which represents 190,000 businesses in the United Kingdom, said that greater national insurance would risk reducing growth at a critical moment in recovering the Restrictions of Coronavirus. A spokesman, he said that companies recognized the need to finance the growing demands on our health and social care service, but urged the Government to see other methods to raise funds.
If the Government goes on, as planned, then it is incumbent on them to use the March budget to present more ambitious plans to increase the long-term growth potential of the economy, the CBI added. In other places, the head of the Small Business Federation, said its members had warned that they would have no choice but to increase prices, reduce salaries or let staff work, if the government proceeded as planned, due to others National President Mike Cherry said: This regressive tax walk will reach the lowest income and the small businesses of the community will fight the most difficult, leaving less cash in the pockets of the villages to stimulate our recovery. Mr. Cherry also warned that the national insurance increase would coincide with the reliefs of moments on commercial rates. The head of the Hospitality of the United Kingdom, Kate Nicholls, the restaurants, bars and pubs of Tweeted, also had to deal with the business rates that end, at the top of the VAT increase and the problems of the supply chain.
All when consumers will already feel pinch and demand will be suppressed. Meanwhile, Matthew Taylor, executive director of the NHS Confederation, said without additional funding, the public would face more time for the treatment and hundreds of thousands of vulnerable people would not get the attention and support they need social care services But it is for the government to decide the best way to finance this additional investment, he added.