In response to recent Budget changes, over 200 leaders from the UK hospitality sector have expressed concern that increased National Insurance Contributions will lead to job losses and potential business closures. They argue that the tax hike, which raises the employer NIC rate from 13.8% to 15% and lowers the salary threshold for contributions, will disproportionately impact smaller firms unable to pass costs onto customers. Chancellor Rachel Reeves maintains that these changes will generate £25 billion for public services, including the NHS, while government officials claim many businesses won’t face increased costs.