Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to paragraph 2.40 of the Autumn Budget 2024, published on 30 October, whether she has made an assessment of the long-term impact of national insurance increases on the ability of SMEs to invest in (a) growth, (b) innovation and (c) job creation.

The Government has protected the smallest businesses from the impact of the increase to employers’ National Insurance by increasing the Employment Allowance from £5,000 to £10,500, which means that 865,000 employers will pay no employer NICs at all next year. More than half of employers will see no change or will gain overall from this package and eligible employers will be able to employ up to four full-time workers on the National Living Wage and pay no employer NICs.

A Tax Information and Impact Note regarding these changes was published by HMRC on 13 November.