Brian Gilda ‘horrified’ by £450k NIC hit
20 November 2024
Peoples chairman and MD Brian Gilda says the business faces a £450k hit due to Labour’s changes to National Insurance in the autumn Budget. “I was horrified – it’s gone down like a lead balloon,” Gilda told Auto Retail Agenda. “As a result, we have immediately stopped recruitment – we’ll now only take on people if absolutely required.” The business will, however maintain its apprentice programmes.
Echoing Gilda, Deutsche Bank has warned the chancellor’s NI changes would see around 100,000 jobs lost. “Given that the increase in NI contributions is ultimately a payroll tax, firms’ payroll decisions will come under significant scrutiny going forward,” said economist Sanjay Raja. “This won’t happen all at once. More likely, we will see declines in hiring and employment growth, with some firms adjusting more immediately to the increase in tax.”
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