Follow theRachel Reeves' massive raid on employers' national insurance contributions will harm economic growth, jobs and wages, furious business chiefs have warned.
But, in a furious backlash at the move, senior industry figures said it would bring growth to a 'grinding halt', threaten an uptick in unemployment, and risk dampening wage rises. Kate Nicholls, chief executive of UK Hospitality, warned of a 'painful' time for hospitality businesses Rain Newton-Smith, chief executive of the Confederation of British Industry, said Ms Reeves had unveiled a 'tough Budget for business'.
'In the short-term, the tsunami of employment costs coming in April will ultimately do more to hamper growth than incentivise it. Lee Biggins, chief executive of jobs site CV-Library, said: 'We've heard from our customers - some of the UK's biggest recruiters - that the increase in employer National Insurance contributions announced in today's budget is likely to result in a decrease in hiring.
Simon Delaney, who owns The Firbank Pub and Kitchen, in Wythenshawe, Manchester, said the rise in employers' NICs and minimum wage hike will cost his business an extra £2,000 a month 'Increased National Insurance payments for my business is not going to break the bank but it means there is less money to go around,' she told MailOnline.
She told the Commons of the NICs plans: 'I am today increasing the Employment Allowance from £5,000 to £10,500. Ms Reeves said the raid on businesses was 'a difficult choice' that she did not take 'lightly' - but stressed it was 'the right choice to make'. At the same time, she doubled the employment allowance that small businesses paying less than £100,000 in NI contributions each year can claim back.
From pension holders to investors, smokers to jobseekers, the list of losers from today's Budget is long. CGT is charged on profit from selling an asset that has increased in value, such as stocks that are not held in an ISA, or a second home. Sarah Coles, head of personal finance at investment firm Hargreaves Lansdown, said the increase 'makes investment less attractive for newcomers'.
Critics of the plan have argued that the change is coming in too fast and could force some schools to close as parents pull their children out due to higher fees. Wealthy pensioners: Blow as pensions become liable for inheritance tax for the first timeFrom 2027, the value of pensions pots will be included in estates and caught in the net of inheritance taxes.
Families can still pass on up to £325,000 after death free of inheritance tax – known as the nil-rate band. The Chancellor has extended a freeze on the nil-rate band by two years until at least 2030. The threshold has been frozen since 2009. 'There will be a mad rush to the exits before April Fools Day as high net worth UK taxpayers flee The Nightmare from Number 11 Downing Street,' he told MailOnline.
Vapers and smokers: New duty introduced for vape fluid Cost for you - £1.40 more for a bottle of vape liquid and 54p more for 20 cigarettes According to Treasury figures smokers can expect to pay 54p more for a packet of 20 cigarettes, while 30g of rolling tobacco will have an extra £2.32 added to the price.
Critics have branded Labour's decision to increase the cap - first announced by the Prime Minister on Monday - as a 'bus tax' and said it would impact on 'working people' across the country. A Budget document published by the Treasury stated that the 4.6 per cent rise will be 'the lowest absolute increase in three years'.About 45 per cent of fares on Britain's railways are regulated by the Westminster, Scottish and Welsh Governments.
Air passengers: Duty rises Cost for you - £2 on the cost of an economy ticket for a short-haul flight Ms Reeves mocked Tory leader Rishi Sunak as she joked his 'ears have pricked up' when she mentioned APD. It will add further labour costs to businesses already struggling with an imminent rise in the national living wage, as well as other cost constraints.