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Insurance industry

Business Leaders in Wales Speak Out Against Labour's National Insurance Proposals

Strategic Insights

— 2 min read

Business leaders in Wales have expressed concerns over Labour's plans to increase National Insurance contributions for employers and employees. The proposed 1% rise, which is set to come into effect from next April, is seen as a 'tax on jobs' by many. The Conservative Party has promised to resist the increase by driving £6bn of efficiency savings, but Labour, the Liberal Democrats, and Plaid Cymru remain skeptical.

Key Takeaways:

  • Labour's National Insurance proposals will increase costs for businesses, with Asset International's Simon Thomas citing the 1% rise as a "hard blow" that will affect both the workforce and the company.
  • Teifion Davies, managing director of Swansea-based IT company BSS, disagrees with arguments that Labour's proposals will have no real effect on employment, stating that they are a "tax on jobs".
  • Director of the IoD in Wales, Roger Lloyd Griffiths, welcomes the Conservative Party's decision to support a reversal of the National Insurance hike, but criticizes them for being "late to the party".
  • Chartered accountants UHY Peacheys' Steve Theaker estimates that the 1% rise will put a break on the economy, making it more difficult for businesses to offer pay rises and recruit new staff.
  • Denise Morris, director of Llantarnam-based HR and training consultancy 4-ward Development, warns that the extra 1% spent on National Insurance will make her company more cautious when it comes to recruiting and expanding its team.
  • Bill Mayne, chief executive of Cardiff-based business services group MSS, argues that adding to the cost of employing people in the private sector is "simply wrong", especially when there is waste in the public sector.
  • Steve Howell, chief executive of Freshwater, highlights the issue of public sector clients contributing to 25% of Freshwater's revenue, making the National Insurance increase a significant cost.

Statistics:

  • £6bn: The amount of efficiency savings the Conservative Party plans to drive to resist the National Insurance increase.
  • 1%: The proposed rise in National Insurance contributions.
  • 0.5%: The additional cost of the National Insurance increase for Freshwater, according to Steve Howell.
  • 25%: The percentage of Freshwater's revenue from public sector clients, as highlighted by Steve Howell.

Sources:

  • Quote from Simon Thomas, managing director of Newport-based manufacturing company Asset International.
  • Teifion Davies, managing director of Swansea-based IT company BSS.
  • Interview with Director of the IoD in Wales, Roger Lloyd Griffiths.
  • Steve Theaker, senior partner at South Wales chartered accountants UHY Peacheys.
  • Denise Morris, director of Llantarnam-based HR and training consultancy 4-ward Development.
  • Bill Mayne, chief executive of Cardiff-based business services group MSS.
  • Tweet from Steve Howell, chief executive of Cardiff-headquartered and Aim listed PR and marketing group Freshwater.

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