Authorities accused of ‘kicking companies whereas they’re down’ as tax hike introduced
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The government tax increase announced yesterday (September 7th) of $ 12 billion
Prime Minister Boris Johnson’s announcement breaks a promise in the Tory Manifesto and has sparked criticism within his own party.
Entrepreneurs also want to know why they are being attacked.
Sarah Loates, director at Loates HR Consultancy, said, “Thanks to the government for tackling issues like welfare that were previously too difficult to tackle. However, I disagree with increasing NICs as many small businesses are still dependent on life support. Large increases of this kind will only add to the pressure on cash flow and reserves at a time when companies need to invest to grow. “
Natalie Bamford, Managing Director of Colleague Box in Derby, added, “This is a textbook example of how to kick a person when they are on the ground. We inevitably had to pay for the pandemic, but aren’t we still in the pandemic? For a nation that is still grieving for the loss of “normal life” it just feels like this is another blow and another reason to feel completely drained. “
Scott Knowles, Chief Executive of the East Midlands Chamber of Commerce, said, “Increasing social security contributions from both employers and employees risks slowing employment growth at an absolutely critical time. Businesses have been hit by 18 months of Covid-related restrictions, with many building debt burdens and struggling for cash flow.
“This surge could have an impact on the overall economic recovery, causing significant costs for companies already facing a number of new cost pressures and dampening the entrepreneurship they need to drive a return to sustainable growth.”
