Autumn budget 2022: The government has decided to maintain the current freeze on employers’ national insurance (NI) contribution thresholds for a further two years.
Chancellor of the exchequer Jeremy Hunt told the House of Commons in his autumn budget that the freeze would continue to April 2028.
In addition, the employment allowance will be retained at a higher level of £5,000 until March 2026.
Paul Farrer, founder and chairman of recruitment agency Aspire, said: “Cancelling the increase to employers’ national insurance was the right decision. Now, the new Prime Minister and his chancellor must build on that, by committing to not increasing the rate again, and ideally by considering a further reduction.
“A lower tax regime keeps unemployment low, maximises government receipts through income tax and corporation tax. Otherwise, employers are forced to cut costs, and redundancies are usually the path of least resistance, then the Exchequer loses the combined national insurance and income tax.
“If this government wants to be seen as pro-business, it must create the right environment for businesses to thrive. Committing to maintaining employers’ national insurance at its current rate is the minimum; while tax cuts in this climate are unlikely, a reduction would go some way to rebalancing the tax burden, incentivising employment at a crucial time.”