We were inevitably going to get some whinging about the NI and national minimum wage increases adding to the costs of running a business.
And a recent survey by the Brithsh Chambers of Commerce has revealed that around half of UK firms intend to raise prices next year to cover these costs...
However it's the larger firms that are hit hardest with smaller firms seeing a reduction or no change in NI payments.
This fact doesn't seem to be getting too much attention.
So here we have a situation where the last couple of years have been turgid for consumers with rapid inflation fuelling a sharp increase in the cost of living.
And let's not forget that although inflation is now down to low single digits it's not reversing that 12 months of double digit inflation!
And over the last couple of years firms have generally done OK they've been in profit!
A better balance,,?
So maybe this policy is the right balance - making firms bear the brunt of fixing our tax deficit.
And most of that increase is to the MW - the NI increase is marginal.
And you could argue that maybe all firms should be paying more than minimum wage anyways!
And generally increasing the wages of the poorest means they spend that on essentials pusing that money back into the economy.
So this is a policy that should reduce extraction, and it's quite a gentle change in the grand scheme of things!
The (minimal?) risk..?
The danger is that we'll see a further increase in inflation.... but I don't see what else we can do...?@?--------------a
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All that’s going to happen is big companies putting prices up, so the smaller companies will end up paying more for their supplies etc. it’s a never ending circle where at the end of the day the average working man will be the worse off.
I'm more of the
taxation is theft
kind of person..