PRA comments on PM's decision to raise National Insurance

Gordon Balmer, Executive Director of the Petrol Retailers Association (PRA) comments on the Prime Ministers decision to raise National Insurance contributions.

“Following the announcement that Boris Johnson is raising NI rates by 1.25% from April 2022, the PRA is concerned that this will increase the burden on businesses who have already been hit hard by the pandemic”.

The move hopes to raise £12bn a year to tackle the health backlog caused by the Covid pandemic and boost social care.

“Whilst the PRA respects the intention of the Government to support the social care sector, the increase in NI could impact economic recovery by making recruitment of staff more expensive and this will also affect people who are seeking to return to work.

“With the furlough scheme and business rates relief coming to an end, the freezing of allowances on incomes and pension pots, an increase in corporation tax, and an increase in council tax, the Government has now played its last card for further tax increases, such as in fuel duty and business rates”.