NIC Hike Hammers Jobs: NTIA Slams Government Over Rising Unemployment
12 November 2025 - Press releaseMichael Kill, CEO, Night Time Industries Association:
“The latest ONS figures are deeply concerning. A rise in unemployment to 5%, the highest in four years, is a stark signal that the Government’s current approach is failing to support job - particularly in sectors like hospitality, leisure, and night-time industries, which have been hit hardest by the national insurance increase and the rising national living wage.
Economists have long warned that April’s £25bn hike in employer National Insurance contributions would squeeze firms’ payrolls and stall hiring, and these numbers confirm their fears. HMRC data showing a fall of 180,000 workers on company payrolls in the last year underlines that businesses are already under significant pressure.
The Government must recognise that these policy choices are not neutral—they have real consequences for employment. Increasing taxation on businesses during a slowdown risks further job losses and threatens the recovery of the sectors that employ millions of workers. If the Chancellor proceeds with further tax rises in the upcoming budget, it will only exacerbate the problem, discouraging investment and undermining economic growth at a time when jobs are already under threat.
We urge policymakers to reconsider the trajectory of taxation on businesses and to take a measured approach that protects jobs, supports growth, and allows the UK’s economy - and its workforce - to thrive.”
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