What Does the NI Rise Mean for Investors?

The planned rise in National Insurance Contributions will increase the burden on companies, and that could mean lower profits and returns for shareholders

Cherry Reynard 24 September, 2021 | 11:52AM
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The rise in National Insurance has been welcomed and condemned in equal measure, with some suggesting it is a necessary evil to solve the vast and intransigent problem of social care, while others suggesting it disproportionately affects working people and businesses. However, it’s impact on UK plc has been examined in far less detail. Will it make life harder for UK companies?

Business leaders have generally condemned this additional tax burden on business, which comes hot on the heels of a planned rise in corporation tax. In a recent speech, CBI Director-General, Tony Danker, said: “We in business believe that we should pay our fair share to tackle the debts of Covid. That is why many business leaders accepted the jaw-dropping six-point corporate tax increase announced in March. But there is a real risk now that the government will keep turning to business taxes to carry the load.

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About Author

Cherry Reynard

Cherry Reynard  is a financial journalist writing for Morningstar.co.uk.