News Pricer.lt

Next CEO Lord Wolfson: National Insurance hike will hit entry-level jobs

Next CEO Lord Wolfson: National Insurance hike will hit entry-level jobs

Next CEO Lord Wolfson has warned upcoming tax changes in April, including an increase in National Insurance, will make it harder for individuals to “enter the workforce”.

Speaking to the BBC, Wolfson warned that the higher NI contributions required from employers will have a significant impact on the retail sector. He added that “the axe [had] fallen particularly hard” on entry-level positions.

To ease the burden, he is urging the government to implement the tax changes gradually, rather than all at once in April. He proposed that the NI threshold should be lowered over time, instead of having a sharp decrease in a few months.

Related Story

In the Autumn Budget, Chancellor Rachel Reeves announced plans to increase employer National Insurance contributions from 13.8% to 15% and confirmed the minimum wage would rise in April, with over-21s set to earn £12.21 per hour.

Next revealed last week that it would raise prices by 1% on like-for-like goods to help offset £13m of its £67m additional wage costs.

The high street giant also plans to make £23m in operational savings through efficiencies in warehouses, distribution networks, and stores.

Wolfson concluded: “My worry is that it’s going to be harder and harder for people to enter the workforce.

“It’s very difficult to see how such a big increase in the cost of entry-level work is going to result in anything other than a reduction in the number of opportunities available.”

Click here to sign up to Retail Gazette‘s free daily email newsletter

News source

Dalintis:
0 0 balsai
Straipsnio vertinimas
guest
0 Komentarai
Seniausi
Naujausi Daugiausiai įvertinti
Inline Feedbacks
Rodyti visus komentarus

Taip pat skaitykite: