VIKKI Slade has hit out at the government’s “short-sightedness” in its budget - saying Dorset businesses are calculating huge national insurance rises.

The MP for Mid Dorset and North Poole accepted that “the average worker” will not see a tax rise on their pay slip, but warned employers will be calculating whether pay rises are feasible or even P45s. 

She said: “Shops, pubs and cafés facing increases in national insurance and the national minimum wage are already struggling as households deal with cost of living pressures and from their own rising prices for energy and for stock, and they were promised full reform of business rates.  

“Instead, their costs will skyrocket as their 75 per cent business rate relief is slashed to 40 per cent. 

“Granted, the relief has been made permanent, but where is the commercial landowner levy or the charge on the internet giants?  

“Surely taxing the wealthiest would be fairer, rather than hitting small businesses with a tax that takes no account of profits or purpose?” 

Vikki SladeVikki Slade (Image: Richard Crease)

Mrs Slade said she has been contacted by businesses in her constituency sharing their calculations of the impact of the national insurance changes.  

“Corfe Mullen dental practice recently recruited a graduate dentist specifically to serve the child NHS population, boosting capacity in my area,” she added. 

“The increase in NI for staff has wiped out half her annual salary. If we are to stop dentists leaving the NHS, we need exemptions for them now.

“Julia’s House children’s hospice has calculated that its NI increase is £242,000 a year. Shockingly, Tops nursery, which has several early years settings in my constituency, has calculated an increase of half a million pounds, without any additional increase in childcare funding.” 

From next April, employers will have to pay national insurance at 15 per cent on salaries above £5,000, instead of 13.8 per cent on salaries above £9,100 currently. 

Chancellor Rachel Reeves has acknowledged her decision to raise NI contributions for employers could affect wage growth for private sector workers as companies seek to pass on the cost of the tax rise. 

But she insisted ministers had “protected the smallest businesses” from the tax rise, and had stood firm on Labour’s promise not to raise the key taxes on “working people”.