To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to the Answer of 18 November 2022 to Question 87824 Small Businesses: Cost of Living, what assessment he has made of the potential impact of the national insurance freeze on small and medium sized enterprises.
Economic stability relies on fiscal sustainability and the Autumn Statement fixed the National Insurance Secondary Threshold at £9,100 until April 2028. This allows businesses to plan ahead with certainty.
The Employment Allowance enables small businesses and charities across the UK to reduce their National Insurance contributions by up to £5,000 a year. This allowance, first introduced in 2014 at the rate of £2,000, helps small businesses seeking to grow by hiring their first employee or expanding their existing workforce. It means that around 40% of businesses pay no Employer’s National Insurance contributions at all.