The John Lewis Partnership has issued a stark warning to the government, branding the planned hike in National Insurance contributions as a damaging 'tax on jobs' that will stifle economic recovery.
In a bold move, the employee-owned retail group, which encompasses both John Lewis department stores and Waitrose supermarkets, has publicly criticised the 1.25 percentage point increase set to take effect in April. The move breaks from the traditionally cautious public stance often taken by large businesses.
Dame Sharon White, the formidable Chairman of the partnership, argued that the rise comes at the worst possible time for both businesses and their employees. She emphasised that the increase will directly impact the partnership's 80,000 partners (employees) who are already facing a severe squeeze on their living costs due to soaring inflation.
The financial burden on the business itself is also substantial. The partnership is projected to face an additional £20 million in costs due to the increased employer contributions. This significant sum represents money that could otherwise be reinvested into the business, used to support its workforce, or to keep prices competitive for customers.
The criticism adds a powerful business voice to the growing chorus of concern from economists, trade bodies, and opposition politicians. They argue that increasing taxes on work will discourage hiring and investment at a critical juncture for the UK's post-pandemic economy.
While the government maintains that the revenue is essential to fund the NHS and social care, the John Lewis Partnership's intervention highlights the deep anxiety within the UK's crucial retail sector. The announcement signals that businesses are increasingly willing to speak out against policies they believe will hamper their recovery and penalise working people.
