The NI changes are going to cost my organisation £1000 per employee

[flashbac]

The NI changes are going to cost my organisation on average £1000 per employee, The lowering of the threshold alone is going to cost around £600 extra per employee.

We are heavily regulated with fixed income. We're a not for profit. Our customers expectations are increasing. We are now most likely going to have to somehow reduce our headcount now, and payrises for April are going to be off the table.

Just shaking my head really. Our employees don't deserve this. Hard to see how this isn't a tax on jobs.

The lowering of the threshold also means employers have to pay for more workers, because part time salaries are now dragged into it.

A lot of people reading this won't care. All I can say is this NI increase will also affect you. just think about Local authorities, childcare providers and other services. Do you think it won't affect your Councils services/tax bills, to give one example?

(I'm not a Tory bot btw, before anyone starts accusing me of being one. I voted Remain, don't support the Tories at all, can't stand Boris and his cronies.)

If I had the answer to all these problems, I'd be applying to be Chancellor myself. The economy is basically a circle that can't be squared.

I think they backed themselves into a corner.

With hindsight opposition to Hunt's last cut for employees as wholly without principle and a commitment to reverse it would have been better.

But it would have been a stick for the Tories to beat them with...

Agreed

USA and Germany are trying to re-industrialise, meanwhile we're putting the nail in the coffin and getting rid of non-doms, and foreign property investors too.

So I guess our economy is going to be based on selling each other houses.

Quite. It's actually pathetic.

I honestly wouldn’t worry.

Theres going to be a u-turns galore on this budget. She’s already spooked the markets. Moody’s are issuing warnings. Charities are panicking…..it’s a complete shit show.

At least we know they will take a hammering at the next local elections and will be out at the next GE. So just a case of getting through the next few years.

Hopefully then they will recognise that a centrist approach is the only way that Labour can work.

Yes, happy for tech companies or multinational/global firms but it is really not hitting those, though, are they.
Again, we are taxed something like 10% less individually than other European nations.

I'm afraid not thinking redundancies and lower pay will help growth is a basic requirement for the Chancellor, and even if mners can't see it Reeves should be able to.

Even if some think favourably enough of Labour that they overlook those things happening (even to them) it really will be problematic for growth and all the pledges that rest on it. Including defence spending

The problem is everyone wants improved services but no one wants to pay for it.
I would of been happy with a direct tax on everyone with the money going direct to the NHS with those earning more taxed more.

It was the same when they chose not to renew our Nuclear power station capability because it was "cheaper" to import electricity than build our own replacement infrastructure.

Same with the loss of the manufacturing industries in the 70s and 80s. Again "cheaper" to outsource our manufacturing to the emerging cheap workforces of the Eastern countries.

No one is in it for the long term anymore. By the time the inevitable shit hits the fan, i.e. Ukraine, Covid, Suez, etc., the politicians making short term decisions years ago are long retired and enjoying their gold plated pensions, consultancy fees, etc., so they can just shrug it off.

Our economy has been based on buying/selling houses and the service economy of coffees and spa days for 2 or 3 decades now. All on the flawed assumption we can easily and cheaply import what we need, whether food, goods or power. Now we can all see the folly of that short-sightedness but still the politicians can't change their flawed mindset and just carry on making the same mistakes.

Moody’s are issuing warnings

Wonder what Labour will do next

Yep, tech companies have the broad shoulders, but they're not really impacted this much by this. Just don't understand why they didn't go for Corporation tax.

On what basis? It is a party battered at the polls in July and with, as yet, no leader and no policies.

Agreed. We actually had some promise for maker industry resurgence in the late 2010s with lots of young people starting to create small manufacturing businesses but it got crippled by the high cost of housing post Covid.

I think it's worth noting that of all the different finance institutions assessments of this budget, the worst assessment, the very worst one said:

It's nearly as bad as the conservatives would have been.

Good point. And I keep reminding myself of the fact that the Conservatives were only offering more of the same at the last GE. I lalso agree that reducing NI at the time they did it was irresponsible.

Labour and the other parties voted against Sunak's increase in NI at the time anyway.

The NHS and public sector are exempt from the NI increases, @ByQuaintAzureWasp, but stupidly GPs, care homes and hospices won't be.

We've had 14 years of supposedly "pro-business" governments and look at the mess we are in.

In the circumstances it is a remarkably good budget.

Yes but the Employers' Allowance is doubling.

Your math isn't mathing, unless your employees really are on 180k each.

People who have private health and use private schools are proven to be happy to pay for improved services.

This in spades.

It's refreshing reading your posts as you clearly understand the dynamics of economics and business.

I also think there are too many who really do not understand, or refuse to admit, the catastrophic nature of what Brexit did to this country.

Yanbu. We are already discussing folding our companies. Or we need to get rid of staff. We can't afford the extra costs any more.
So in doing this people are going to be losing jobs.

Yes money needs to come from somewhere. But this wasn't the way. Tax profits, sure. Don't tax us for basically employing people.

A lot of unemployment coming our way again!

I also think they may well have to reconsider what they have imposed on farmers and u turn on this. Pretty much like George Osbourne's pasty tax.

We need farmers producing food and livestock for this country. We don't produce enough as it is and rely heavily on importing.

If farmers can't pass down their farms through the next generation without these huge taxes that have just been applied, they will have to sell. Less farming just means less produce = more imports.

Corporation has has already been increased from 19% to 25%. That's already quite a hike!!