Key facts
- Businesses want the national insurance threshold raised to £6,000.
- Retail and hospitality firms also hope Healey will ease business rates.
- Healey rejected calls to equalize capital gains and income tax rates.
UK Chancellor John Healey met with leaders from major retailers and hospitality businesses, including Tesco, Costa Coffee, and the Co-op, to discuss easing the cost of doing business. The businesses urged Healey to cut employers' national insurance contributions (Nics) and business rates. They specifically requested a reversal of the previous government's decision to lower the earnings threshold for Nics from £9,100 to £5,000, arguing it has contributed to job losses for young and part-time workers and increased youth unemployment. Businesses are advocating for the threshold to be raised to £6,000 to stimulate job creation and alleviate inflationary pressures. Healey has committed to reducing business costs amid rising energy prices. Separately, Healey has dismissed calls from Labour MPs and think tanks to equalize capital gains tax (CGT) rates with income tax rates, citing concerns about deterring inward investment, although a smaller increase in CGT is still possible.