Press release: Double hit to workers if National Insurance hike goes ahead
Cost of living could create endless cycle of misery
The SNP has demanded the UK government scrap the regressive national insurance hike following warnings of potential devastating knock-on effects to families and businesses should it go ahead.
The Federation of Small Businesses and the British Retail Consortium warned this morning that an increased cost in employment coupled with the national insurance hike could see workers miss out on planned pay rises to offset costs.
Earlier this week warnings also rang out from the Institute of Directors who said 38% of their members plan to pay for tax hikes by raising prices of their goods and services.
According to the Office for National Statistics (ONS), annual wage growth sits at 3.8%, falling behind inflation which hit 5.4% in December.
To help families through the cost of living crisis the SNP are calling for an emergency package of measures, including the implementation of the Real Living Wage of £9.90 an hour.
Commenting, the SNP’s Shadow Work and Pensions Secretary David Linden MP said:"Families are already worrying about sky-high energy bills, which are set to soar further, and the fact that inflation is at record levels – the last thing they need, as we continue through a pandemic, is the prospect of falling wages or reduced hours.
"However, that could be the unfortunate reality for many families if the UK government ploughs ahead with their planned regressive national insurance hike as the cost of living crisis continues.
"The knock-on effect to businesses will be devastating, leaving many with no choice but to raise prices, scrap pay rises, cut hours, or shut up shop entirely.
"If this happens, we'll see families with even less money to spend, businesses with fewer customers and sales, and an endless cycle of misery.
"The Tories should be working hard to find solutions that will alleviate peoples fears over this crisis and get the economy moving for everyone, instead they’re too mired in sleaze and scandal to pay any attention.
"We need to see the urgent delivery of measures to help people through the crisis, not least the implementation of the Real Living Wage of £9.90 an hour."
