Treasury written question – answered at on 7 May 2025.
Edward Morello
Liberal Democrat, West Dorset
To ask the Chancellor of the exchequer, whether she has made an assessment of the potential merits of introducing a lower rate of employer National Insurance contributions for businesses in the hospitality sector which employ a high proportion of part-time workers.
James Murray
The Exchequer Secretary
The Government has taken difficult but necessary decisions to fix the public finances and create long-term stability in which businesses can invest and grow.
The Government decided to protect the smallest businesses from changes to employer National Insurance contributions by increasing the Employment Allowance from £5,000 to £10,500. This means that this year, 865,000 employers will pay no NICs at all, and more than half of all employers will either gain or will see no change. It means employers will be able to employ up to four full-time workers on the National Living Wage without paying employer NICs.
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The chancellor of the exchequer is the government's chief financial minister and as such is responsible for raising government revenue through taxation or borrowing and for controlling overall government spending.
The chancellor's plans for the economy are delivered to the House of Commons every year in the Budget speech.
The chancellor is the most senior figure at the Treasury, even though the prime minister holds an additional title of 'First Lord of the Treasury'. He normally resides at Number 11 Downing Street.
