Next Prime Minister must not ‘tax companies to oblivion’, says Fuller’s boss
The boss of Fuller’s has pleaded for the next Prime Minister not to ‘tax companies to oblivion’ as he blamed the National Insurance hike for causing a ‘self-inflicted problem’ of soaring youth unemployment.
Simon Emeny said that it was ‘illogical’ for the Government to be ‘planning on making it more difficult to employ people with further employment legislation’ after a series of tax hikes on the sector.
His remarks come as the hospitality industry, including well-known figures such as chef Tom Kerridge, has called for the VAT rate to be cut from 20 per cent to 10 per cent to align with European rates.
Emeny cited increases to wages, National Insurance contributions for employers, beer duty, and new packaging taxes, as well as looming tourist taxes, as examples of Government policies that have piled pressure on the sector.
‘Despite all of this, they are planning on making it more difficult to employ people with further employment legislation – it is illogical,’ he told The Mail.
The pub boss has called on the next Prime Minister to boost economic growth and not tax companies ‘to oblivion’
‘Since the hike in National Insurance Contributions for young employees, the country has seen youth unemployment rise to 15 per cent, creating another self-inflicted problem for society that the Government now needs to solve,’ Emeny said.
He said that while his 337 pubs have been doing well, communities affected by ‘lost pubs’ are ‘well publicised’ – with the UK losing around 5,800 pubs over the last decade.
The comments came after the bosses of more than 80 High Street retailers – including Tesco, Sainsbury’s and John Lewis – warned the government is ‘pricing out’ firms from hiring young workers.
Emeny told The Mail: ‘This country, over the last ten years, has resorted to over taxing individuals and companies, it’s not sustainable. The new Prime Minister must have some meaningful ideas to generate economic growth – not just to tax companies to oblivion.’
Emeny said that pubs are ‘usually the first line of entry into employment for young people,’ but over recent years, firms’ financial incentive to hire them has been stripped away by increases in youth wages.
He added: ‘Businesses are forced to be more productive and efficient and are hiring more experienced people. Like many people, I worry about this. There needs to be a meaningful solution to this.’
Pressure on employers comes as Alan Milburn last week said that the number of young people classified as not in education, employment or training (NEET) was ‘probably the most significant challenge facing our country’.
More than 1 million 16- to 24-year-olds were not in employment, education or training in the first three months of this year, the highest since 2013, according to fresh figures from the Office for National Statistics.
Emeny added: ‘The Government has been prepared to tinker around edges and produce announcements that don’t provide any meaningful change. Whether this is a reversal of NI rate or the more likely thing of a reduction in VAT or a carve out for hospitality, in line with what happens in France and Spain, which at least recognises the incredible tax burden the sector faces.’
It comes as 80 UK high street giants have said policymakers need to revisit national insurance, changes to the national living wage and employment rights to help support the creation of entry-level jobs.
In a letter co-ordinated by the British Retail Consortium (BRC), they said Government policies are ‘making it harder to hire young people’.
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