Leading figures from the UK retail and hospitality sectors have called on Chancellor John Healey to reduce the financial burden of hiring young workers during his first budget. The group, which includes representatives from Tesco, Costa Coffee, and the Co-op, held a meeting at 11 Downing Street on Tuesday morning to discuss the issue.
During the event, the chancellor was briefed by prominent industry executives, including Marks & Spencer CEO Stuart Machin and Sainsbury’s chief executive Simon Roberts. The central focus of their appeal was the impact of recent increases in employers’ national insurance contributions (NICs), which they argue have made it more difficult to employ younger staff.
I wonder if cutting costs will actually lead to more hires, or just higher profits for these major corporations?
Finally, someone is addressing the real barrier to youth employment. The NIC hikes are pricing out younger workers entirely.