Two Birmingham landlords fear the Government’s decision to raise national insurance ‘will kill pubs’. Both Hennessey’s Bar and The Wellington spoke to BirminghamLive about the change which will raise employer Ni contributions from 13.8% to 15% from April.
The government said that the rise would increase revenue for the NHS and provide additional funding for contributory benefits such as the state pension. Based on the median average earning, employers will be estimated to pay an additional £900 for each employee.
Hennessey’s Bar owner Gary McDonnell criticised the planned increase, scheduled to start on April 6. The Digbeth landlord said Labour has three months to change the decision or it could mean the end for many businesses.
Read More: Inside The Wellington pub after 20 years in Birmingham
He said: “That’s the killer, I’ve got a very strong view on the national insurance rise. Labour has been so naive to not tax the person, but instead tax the employer, which is the same thing. I’m a Labour supporter but I’m struggling at the moment with Keir Starmer.
Gary McDonnell owns Hennessey’s Bar, located on Allison Street in Digbeth
“This is not a good move for businesses. It shows the naivety in Labour and what they have shown so far, it’s embarrassing. I will wait and see what my national insurance is going to be. I’ve heard it’s going to be hefty.
“I think it will kill pubs. Not just pubs, but it will finish off nail salons, cafes and the high street in general.
“It’s a big mistake and I think they’ve got three months to change it, fhey would get more respect. When I make mistakes, I hold my hands up.”
The Wellington landlord Nigel Barker added: “The increase in National Insurance contributions is going to kill so many pubs. That will impact me here.
The Wellington landlord Nigel Barker
“It’s going to cost me hundreds of pounds a week extra. Where do I get that from? We don’t want to raise prices but that money has to come from somewhere. It’s a really poor decision from the Labour government.
“Nobody in government, whether it’s the Conservatives or Labour, understands the hospitality industry. They’ve come up with stupid ideas over the years, not knowing how it will affect the industry. This latest budget outperforms all the other bad decisions.”