The Scottish and Northern Ireland Plumbing Employers’ Federation (SNIPEF) has warned that the changes in employer National Insurance (NI) announced by the UK government in the Budget will damage the plumbing and heating industry.
Measures announced by Chancellor Rachel Reeves included an increase in employer NI from 13.8% to 15%, alongside a lowered threshold for NI payments reduced from £9,100 a year to £5,000.
The SNIPEF warned that the overall impact of these changes would further burden an already strained construction sector, threatening existing jobs and job creation and hindering essential investments in skills and productivity.
Although the Employment Allowance increase from £5,000 to £10,500 will relieve some small businesses, Fiona Hodgson, Chief Executive of SNIPEF, said: “While we welcome the Employment Allowance increase for the smallest employers, this increase in employer NI, particularly with a lowered threshold, severely limits crucial investments in equipment, training and development, the very goals Labour’s own manifesto pledged to support.”
According to SNIPEF’s soon-to-be-published State of Trade survey, 81% of members remain confident in their industry’s strength, and only 32% feel optimistic about the broader UK economy.
“With rising costs, payment delays and this added tax burden, any potential for business growth is under threat. We urge the government to reconsider its approach, as imposing these taxes now only increases pressure on an already fragile construction sector,” Hodgson said.
SNIPEF suggested that the government consider alternative solutions, such as further support and incentives for training and professional development, allowing small businesses to continue delivering essential services without compromising growth and innovation.
