Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the RetailNI survey results published in February which show that 74 per cent of the businesses surveyed expect to reduce the number of employees and other staff following the increase in employer National Insurance contributions and minimum wage.

Raising the revenue required to fix the public finances and rebuild public services has required difficult decisions on tax, which has meant asking some employers to contribute more.

The Government has protected the smallest employers by increasing the Employment Allowance to £10,500. This means that next year, 865,000 employers will pay no NICs at all and more than half of employers will see no change or will gain overall from this package.

The National Minimum Wage and National Living Wage rates are set on the independent and expert advice of the Low Pay Commission (LPC). The LPC has representatives from business, employee, and academic communities, and through their social partnership model reaches a consensus agreement on the rates. By seeking advice from the LPC when setting the minimum wage rates, the Government is able to ensure that the right balance is struck between the needs of workers, affordability for businesses and the impact on the economy.

Wider business support is devolved in Northern Ireland and is the responsibility of the Northern Ireland Executive. The Northern Ireland Executive’s Spending Review settlement for 2025-26 is the largest in real terms of any settlement since devolution and they receive over 24% more funding per person than equivalent UK Government spending in the rest of the UK, including the 2024 restoration financial package.