Watch more of our videos on ShotsTV.com
and on Freeview 262 or Freely 565

The Labour Government's decision to increase National Insurance contributions (NICs) by employers has sparked significant concern among businesses and residents in Ripon and across North Yorkshire. This policy change, which aims to bolster the national budget, is already stifling job creation and economic growth in our community as businesses hold off on hiring.

In North Yorkshire, small businesses are the backbone of our local economy. They provide essential jobs and services and promote a sense of community and resilience. However, the rise in NICs by employers threatens to undermine this stability. As I highlighted in the House of Commons this month, "almost all of the jobs that would have been created in small businesses over the coming year are now being repressed, leading to a loss of income for the Exchequer." This measure will result in fewer employment opportunities, reduced consumer spending, and ultimately, slower economic growth.

The impact of this policy extends beyond the business sector too. It poses a significant threat to vital community services, particularly those supporting our most vulnerable members of our community. Children's hospices, such as Martin House, are already operating under tight financial constraints. These institutions rely heavily on charitable donations and government support to provide essential care for children with life-limiting conditions and their families.

With this in mind, I also used my time in the House of Commons Chamber to urge the Minister to consider reallocating funds within the existing budgets to support these critical services. This modest adjustment - around 4 or 5 million pounds - could make a world of difference for children’s hospices, ensuring they can continue to offer the compassionate care that our community relies on.

Julian Smith MP speaking in the House of Commons on 19 March

The Government must carefully assess the broader implications of their policies. While the intention behind the NIC hike may be to increase revenue, the potential loss of tax income from stifled job creation and the strain on essential services could negate any short-term gains. It is crucial that we support a balanced approach that supports both economic growth and the well-being of residents.

As your local MP, I will continue raising the concerns of businesses, residents, and other organisations directly with ministers to ensure they are aware of the impact of their policy decisions.

Reporting Back column with Julian Smith MP