The Government’s decision to reverse the 1.25% rise in National Insurance has been hailed as a big win for the Chamber network after months of lobbying.
Shevaun Haviland, Director General of the British Chambers of Commerce, said: “After months of campaigning, today’s Government announcement to reverse the increase to the National Insurance Contribution (NIC) is a big win for the British Chambers of Commerce and the business community. This is much needed support for businesses during these difficult times.
“There are a range of other challenges that must be addressed including labour shortages, supply chain disruption, and rising raw material costs. Tomorrow’s mini budget from the Chancellor is now a critical moment. To truly revitalise our economy for the difficult months ahead then tomorrow must bring a clear long-term plan that gives business the confidence to grow.”
The NI rise was introduced in April under former Chancellor Rishi Sunak, but during the Tory leadership race Liz Truss pledged to change it.
It will be reversed from November 6 and the Government will axe a planned tax rise to fund health and social care.
New Chancellor Kwasi Kwarteng said: “Taxing our way to prosperity has never worked.
“To raise living standards for all, we need to be unapologetic about growing our economy. Cutting tax is crucial to this.”