A red card for the Chancellor? Ex-footballer Gary Neville blasts Rachel Reeves' tax hike on businesses

Daily Mail​

4 days ago

Gary Neville has condemned Labour's tax hikes for deterring firms from employing people.
The ex-England and Manchester United footballer hit out at Chancellor Rachel Reeves for increasing employers' National Insurance contributions.
Neville, who is now a business owner and TV pundit, claimed the tax hike announced by Ms Reeves at last year's Budget 'probably could have been held back'.
The criticism will sting both Ms Reeves and Prime Minister Sir Keir Starmer, following Neville's staunch support for Labour at the general election.
The former defender told Sky News: 'I honestly don't believe that, to be fair, companies and small businesses should be deterred from employing people.
'So, I think the National Insurance rise was one that I feel probably could have been held back, particularly in terms of the way in which the economy was.'
Neville also warned about the impact of a double whammy for under-pressure businesses at the start of April.
This is when both the National Insurance rise and Labour's increase in the minimum wage came into effect, both of which hiked costs for firms.
Neville said: 'I don't think we can ever criticise the Government for increasing the minimum wage.
'I honestly believe that people, to be fair, should be paid more so I don't think that's something that you can be critical of.
'I do think that the National Insurance rise, though, was a challenge.'
A recent report found nearly 50,000 UK companies are on the brink of collapse as rising wage costs, due to Budget measures, put small firms under 'immense strain'.
The latest Begbies Traynor red flag alert found that firms in critical financial distress rose by more than a fifth (21.4 per cent) year-on-year to 49,309 in the second quarter.
Consumer-facing industries saw some of the most 'extreme' rises in critical financial distress, with a 41.7 per cent surge among bars and restaurants, a 39 per cent leap for travel and tourism and 17.8 per cent jump for general retailers.
Begbies warned that many independent pubs will not have the scale to withstand the pressures for another year without action.
Ric Traynor, executive chairman of Begbies Traynor, said: 'The sharp rise in critical distress underscores just how tough the economic environment is for UK businesses and it's abundantly clear that tens of thousands of firms are struggling to stay afloat.
'Small and medium sized businesses across the UK are being put under immense strain by the recent increases to employer's NI as well as the increase to the national minimum wage.
'With limited financial headroom to absorb rising costs, many businesses are now reaching a tipping point.'