UK firms postpone hiring as National Insurance and VAT costs rise ahead of the Budget

Business owners across Plymouth and Devon say they are holding back on new hires because the 2024 Budget will raise employer National Insurance contributions to 15% on salaries above £5,000 (up from 13.8% on salaries above £9,100) and increase the legal minimum wage for over‑21s to £12.21 per hour. Small‑business owners like Michelle Bunker of WGP Maintenance and Tim Randell of Links Publishing argue that the higher payroll costs, combined with a living‑wage increase, make it difficult to expand. The hospitality sector, represented by the Moxy Hotel and the Duke of Cornwall Hotel, also calls for a reduction in the 20% VAT on pubs and restaurants to 10% to ease financial pressure. The government has pledged to ease the burden through lower corporate tax rates and reduced National Insurance for apprentices and employees under 21, but many firms still feel the impact of the cost‑of‑living crisis on both business growth and charitable fundraising.