Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact of (1) the cost of the increase in National Insurance contributions for employers, and (2) the savings from the increase in employment allowance for the smallest businesses, on the retail sector.

A Tax Information and Impact Note was published on 13 November alongside the legislation when it was introduced to Parliament.

The latest forecasts for tax revenues were published alongside the Office for Budget Responsibility’s (OBR) October Economic and Fiscal Outlook. These forecasts are based on economic determinants, including wage growth and employment levels.

The government has protected the smallest businesses from the impact of the increase to employer 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 see no change or 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.