Could National Insurance see a temporary reduction?
Former chancellor Sajid Javid urges the Government against a return to austerity and instead calls for a ‘significant’ but ‘temporary’ reduction to National Insurance.
As lockdown measures begin to lighten and businesses start to reopen, now more than ever, it’s crucial that employers have the necessary support to emerge out the other side of this pandemic.
However, worry surrounds the next steps for businesses, as a report by the Centre for Policy Studies warns that a quick economic bounce back from the COVID-19 crisis is highly unlikely.
What will be done to support UK businesses?
In the report, Mr Javid calls for taxes to be lowered to aid the UK’s recovery.
In particular, he states that employers must receive aid in the form of reduced National Insurance, making it cheaper for them to hire and keep staff.
“If we want to support and stimulate employment, then axiomatically the best option is to cut the payroll tax – employer’s National Insurance.” – Sajid Javid, Former Chancellor
Ultimately no stone can be left unturned and other suggestions such as cutting VAT and bringing forward infrastructure products have also been brought up.
Currently, everything is purely speculation and suggestions as nothing has been officially announced.
In the meantime, you can check out our Next Normal Hub that features all the latest news, advice and content to support those looking to adapt.
Additionally, all our payroll products are being constantly updated in line with the latest advice so that all our customers can be assured that their processes are compliant and correct.