Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps she plans to take to (a) support small businesses and (b) ensure that they are not disproportionately impacted, in the context of the anticipated increase in Employers National Insurance Contributions from April 2025.

The Government has taken difficult but necessary decisions to deliver long-term growth. Fixing the public finances is the only way to create long-term stability in which businesses can invest and thrive.

The Government recognises the need to protect the smallest employers, which is why we have more than doubled the Employment Allowance to £10,500. This means more than half of businesses with NICs liabilities either gain or see no change next year. Businesses will still be able to claim employer NICs reliefs including those for under-21s and under-25 apprentices.

The Government is committed to making the UK one of the best places to start and grow a business. The Budget announced tax reforms to provide businesses with long term confidence, to make the tax system fairer, and to support the British high street, including:

Introducing permanently lower tax rates for high-street retail, hospitality, and leisure properties (RHL) from 2026-27;

Preventing RHL relief from ending in April by extending it at 40% for 2025-26, whilst also freezing the small businesses multiplier; and

Publishing our Corporate Tax Roadmap to provide stability, certainty, and predictability within the tax system for businesses across the economy. With a capped headline rate of 25%, the UK has the lowest Corporate Tax rate in the G7. The retention of the Small Profits Rate means 9 in 10 actively trading companies, including many SMEs, will have a Corporation Tax rate lower than 25%, with almost 70% of actively trading companies at 19%.