From 6 April 2025, employers with a Secondary Class 1 National Insurance contributions (NICs) liability, or with employees with earnings of at least £5,000 a year. Not only has the upper threshold been lowered, but the rate has increase from 13.8% to 15%.
Chief executive Kevin Georgel said that company needed to take ‘difficult but necessary steps’ to secure its future success.
Collective consultation
“We have this week communicated to our teams that we will be entering into a 30-day period of collective consultation,” said Georgel. “The process will involve us consulting with team members across multiple departments and may result in a reduction of up to 40 roles through redundancy. Our teams in our managed pubs are not included in the consultation process.”
“The brewing and hospitality sector has had an extraordinarily difficult few years – one of the most challenging periods in our 174-year history. We have successfully navigated these challenges, but they have been compounded by the significant increases in National Insurance announced in the autumn budget, which are effective from April.”
The additional cost of employment will amount to a further £3 million a year. Georgel said was not realistic – nor appropriate – to presume the business could pass these costs onto consumers.
Measured response
“The decision to explore potential redundancies is not one that has been taken lightly,” he continued. “The proposed changes reflect a considered and measured response to the challenges we face and will help ensure that the business remains fit for the future.”
While the business remained profitable and was making good progress against its long-term strategic plans, financial headwinds that have intensified since the Autumn Budget have forced the brewer to take further action to reduce its cost base and strengthen its resilience.
“It is a difficult, but necessary step to secure our future success,” Georgel concluded. “In order to continue to invest for the future, we need to proactively manage and calibrate our costs to reflect the current market conditions.”
Meanwhile, nearly half of UK small businesses say National Insurance increases in the budget will negatively impact them as they struggle with taxes and costs like energy and property.
