Firms 'holding back' on new jobs ahead of Budget
Summary
Businesses in Devon say high employment costs are delaying hiring and making it harder to grow. Ahead of Wednesday’s Budget, they are asking the government to reduce employer National Insurance costs and consider cutting VAT for hospitality businesses.Key Facts
- Links Publishing owner Tim Randell said he is holding back from filling two positions because of employment costs.
- Businesses at the Devon Business Show said they have struggled with higher employer National Insurance contributions and increases to the National Minimum Wage.
- From April 2025, employers pay National Insurance at 15% on salaries above £5,000, compared with 13.8% on salaries above £9,100 before the change.
- The minimum wage for workers aged 21 and over rose from £11.44 to £12.21 an hour in April 2025.
- Business representatives called for lower employment costs and tax relief for small businesses.
- Hospitality representatives called for VAT on pubs and restaurants to be cut from 20% to 10%.
- A charity representative said tighter household spending affects how much the charity can raise and how many families it can support.
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