Calls to cut employer National Insurance contributions for under-25s
Summary
Businesses in Yorkshire want the government to reduce National Insurance (NI) taxes for employers who hire people under 25 years old. They say this would help reduce youth unemployment and support struggling businesses. The Chancellor, John Healey, will announce his Budget on 28 October, but he has not ruled out raising taxes because of high government borrowing costs.Key Facts
- West & North Yorkshire Chamber of Commerce represents 5,000 employers asking for lower NI contributions for under-25 employees.
- Employer NI contributions increased in 2024, which many local businesses say hurt them financially.
- Aqila Choudhry, running a care home company, says businesses face rising costs and need tax relief to survive and grow.
- Ken Murray, principal of York College, requests VAT rebates for colleges to better support young people entering the job market.
- Sixth-form colleges cannot currently claim VAT refunds, unlike academies and free schools.
- Martin Greenhow, a bar owner, says hospitality has suffered since Covid, and the NI tax rise forced layoffs.
- Greenhow also wants changes to income tax and business rates to help people spend more and keep businesses open.
- The Chancellor's October Budget is expected to address these tax issues amid historic government borrowing costs.
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