Employers NI

Very bad time. 
Covid wiped out our reserves, the cost of living crises reduced sales by 24%. 

I wouldn't get half what its worth at the moment even if I could find a buyer. 

At the moment I'm raising about £1.3m to buy out the investors, long story. 

Its shitty running a business in this country at the moment. 

Still don't get why they don't even mention the super rich.

Not I

Maybe the non thinking is how dare employers give people jobs earning an income, a sense of self worth and social interaction.  

I think we're all on the same page here

Dipping a very cautions toe back in this forums waters. 

Most people would agree that public services in our country are in a dreadful state pretty much across the board. While efficiency reforms may provide a long term partial solution, in the short term we have to commit more funds to them if we want them to approve. If we are not to continuously sip in the waters of the funny money pot, that means we have to either raise more money from taxation or cut unnecessary spending elsewhere. Yet every time a spending cut comes along - eg the to my view justified if painful cut to Winter Fuel Allowance - there are howls of protest. And every time a tax increase is proposed, there are more howls of protest from those affected.  We do need to make some difficult decisions. 

There are undoubtedly some sectors in the economy that are really struggling of which leisure is one of the worst at present.  Zany talks about a 24% reduction in revenue in his business which I suspect is not untypical in the sector.  As many costs in that sector are fixed, in many cases that will translate into a 80 or 90 or even 110 or 120% drop in profitability through no fault of the business management.  I fear a large part of that drop in business and hence drop in business values may be permanent in that sector.  A rise in employers  NI simply increases costs and hence pressure on the bottom line. 

It is worth however putting that into context. Zany will know the rough impact of this change on his cost base depending on the employment profile of his employees. I would guess that a 1% increase in Ers NI rate results in roughly 0.5% increase in his salary costs. To put that into context if his total salary bill is £1m, the additional cost (and hence impact on profitability) would be £5,000.  Zany can confirm but I would guess that level of cost increase would not change any of his business decisions especially in respect of hire or not hire decisions and remember this is in the context of pretty much full employment and even labour shortages. 

I understand this tax rise would result in a rough boost the the treasury of £8bn with relatively minor if any negative consequential economic effects. We must wait until the budget to see what they do but I have to say this measure in tough times as part of an overall package doesn't feel unreasonable to me.