The London Assembly has today called on the Mayor of London to lobby the Chancellor to re-evaluate the current increase in employer’s National Insurance contributions and the additional £7bn in costs on employers arising from the Government’s Budget.
This follows concerns raised by industry bodies including the London Chamber of Commerce and Industry, as well as major retailers including Sainsbury’s, Tesco and Morrisons.
Alessandro Georgiou AM, who proposed the motion, said:
“The impact of the raise in employer’s National Insurance Contributions on Londoners could not be clearer in the threatened job-losses in the capital.
“I am pleased that the Assembly has backed my motion calling on the Mayor to lobby the Chancellor to review this, and I hope that the Mayor will share in our concerns about the impact on businesses and Londoners by extension.
“£7bn is a large bill for businesses to swallow – now is the time for the Mayor to come out and oppose it.”
The full text of the motion is:
This Assembly wishes to express its concern regarding the impact of the Government's Autumn Budget, including the decision to increase employer's National Insurance contributions. Decisions taken by this Government have let to economic uncertainty, market turmoil, additional business costs and higher borrowing costs.
This Assembly regrets that costs have risen significantly for employers, and many have been forced to reduce their workforce as a result of the Budget, with Londoners bearing the brunt of redundancies and higher prices.
This Assembly notes the concerns of industry bodies such as the London Chamber of Commerce and Industry who found only 1 in 4 business leaders are confident that the Government will deliver growth.
This Assembly also notes recent job cuts announced by major retailers including: Sainsbury’s (3000 cuts), Tesco (400 cuts), Morrisons (200 cuts), WH Smith, River Island, Schuh, Currys and Next, as well as the comments made by Simon Roberts, Sainsbury’s Chief Executive, who just days after the Budget announcement said, “There will be difficult decisions to take as a result”.
This Assembly calls on the Mayor to lobby the Chancellor to re-evaluate the current increase in employer’s National Insurance contributions and the additional £7bn in costs on employers arising from the Budget, to better support Londoners and their job security.
The meeting can be viewed via webcast or YouTube.
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Notes to editors
- The motion was agreed 9 votes for, 7 against.
- Alessandro Georgiou AM, who proposed the motion, is available for interview.
- As well as investigating issues that matter to Londoners, the London Assembly acts as a check and a balance on the Mayor.
For more information, please contact Tony Smyth in the Assembly Media Office on 07763 251727/ [email protected]. For out of hours media enquiries please call 020 7983 4000 and ask for the Assembly duty press officer.