Independent retailers hit by double whammy with rise in NI contributions
The Federation of Independent Retailers has warned that some local stores could be forced out of business due to the combination of a rise in National Insurance contributions and the national minimum wage.
The increase in the national minimum wage is set to be announced by the government this autumn and will come on top of a 1.25% increase in NI contributions paid by both employees and employers.
The federation’s national president Stuart Reddish said: “While the government is taking steps to solve major problems in our health and social care, a large part of the burden of these changes will hit already hard pressed retailers.
“The cumulative effect of the NI changes, minimum wage increase and resultant increases in pension contributions will push more local businesses towards not being financially viable. Every store put out of business will have a detrimental effect on their local communities.
“We can only hope that the government realises the dangers for the independent retail sector and takes the opportunity to relieve at least some of the burden on store owners, as part of the business rates review this autumn.”