Plaid Cymru Dwyfor Meirionnydd The Rt Hon. Liz Saville Roberts MP and Mabon ap Gwynfor MS

Plaid Cymru Member of Parliament for Dwyfor Meirionnydd, Liz Saville Roberts has today highlighted the devastating impact the upcoming hike in National Insurance and cuts to welfare support will have on businesses and communities across Gwynedd.

Questioning the Sec. of State for Wales, Mrs Saville Roberts cited specific concerns raised by a children’s nursery in Llanwnda and a hair salon in Llanrug, both fear the hike in NI will have an impact on their businesses, including their ability to recruit new staff. 

Speaking in the House of Commons, Liz Saville Roberts MP said:

Elaine’s hair salon in Llanrug, Pitian Patian nursery in Llanwnda, and several care homes and GP surgeries across Dwyfor Meirionnydd tell me that national insurance hikes coming in just a few weeks will stop them hiring any new staff. Her government says they’re cutting welfare to get people into jobs. What jobs?

Ms Saville Roberts challenged the Secretary of State for Wales, to justify how these policies align with the government’s stated aim of increasing employment, warning that the measures would instead lead to fewer job opportunities across Gwynedd.

Liz Saville Roberts MP added:

'Labour’s betrayal of working people in Wales is becoming clearer by the day. They promised change, but instead, we are seeing the continuation of cruel, Conservative-style austerity that will do nothing to improve the lives of people in our communities. The increase in employer NI contributions will have far reaching repercussions across countless business in my constituency, not to mention in both health and social care settings, creating a perfect storm in which providers have no choice but to cut back on services. Businesses across Gwynedd tell me of the huge financial burden they now face. Small businesses are the lifeblood of the Welsh economy. Many of our businesses are SMEs – so supporting them is crucial if we want our local economies to thrive. Instead, Labour’s proposed increase in employer National Insurance contributions risks imposing additional burdens on this crucial yet already struggling sector. I urge Labour to consider the real cost of their regressive proposals on the businesses that are the lifeblood of our local economies and consider a fairer approach.'

Owner of Elaine’s Hair Salon in Llanrug, Gemma Jones said:

Our salon has reached a huge milestone of eighty years and three generations of one family running the business in Llanrug. However, the salon is no longer able to accept new apprentices due to the immense financial burden placed on the business. We currently employ 12 people, (19 before Covid). These additional costs will put yet further pressure on the business. Over the last few decades, it is this nurturing of new blood which has kept the business prosperous. Businesses like ours who are labour intensive and paying VAT are already disadvantaged, ahead of the NI changes in April. We pay not far from £50K of VAT every year and as our work is labour intensive, we can't claim VAT either. For every £10 that comes through the till, £2 goes straight to VAT. On top of that are the rising costs from the increase in NI. If VAT was reduced to 15% or 10% that would at least give us room to consider possibly recruiting an apprentice. The government must urgently rethink the increase in employer national insurance contributions to secure the future of small, local businesses like ours.