Business groups have criticised plans for a National Insurance hike as a drag on jobs growth just as firms seek to recover from the COVID-19 crisis.The 1.25 percentage point increase in NI contributions is intended to pay for reform of the social care system.
But the British Chambers of Commerce (BCC) said it would hit the wider economic recovery while Make UK, representing the manufacturing sector, said it was “ill-timed as well as illogical”.
Paul Dales, chief UK economist at Capital Economics, said the boost to the NHS and social care balanced against the hit from the NI hike could …
