MIDSOMER Norton’s Liberal Democrat MP fears the rise in employers’ National Insurance contributions will lead to recruitment freezes and job cuts in her constituency and across the winder district.

Liberal Democrat MPs across the Bath and North East Somerset (B&NES) area have slammed the move as a tax on jobs and fear employees could face a financial hit of nearly £3,000.

The rise in employers’ National Insurance has come into effect with employees in B&NES feared to be facing a dip in real terms pay by the end of the decade, research suggests.

At the Spring Statement, the Office for Budget Responsibility (OBR) reported that 76 per cent of of the rise in employers' national insurance contributions would be passed down to workers through lower real wages, the Liberal Democrats say.

Research by the Liberal Democrats has found that this means, on average, an employee in the district would be worse off by roughly £2,929 by the end of the decade, with workers experiencing a hit of nearly £469 in the next year on average.

Anna Sabine, Liberal Democrat MP for Frome and East Somerset, whose constituency takes in Midsomer Norton and Radstock, said: “I have spoken with many small businesses and charities that are going to struggle under the new NICs rules.

“For many businesses this doesn't mean growth; it means a recruitment freeze and potentially a loss of jobs. It's short-sighted and shows a misunderstanding of the pressures small businesses are already under.

“Now, more than ever, we must support local businesses and allow them to rebuild our economy by allowing them to thrive, not by taxing them into the ground.”

Wera Hobhouse, Liberal Democrat MP for Bath, says local businesses could be “on the brink” following the tax hike. She said the Chancellor of the Exchequer, Rachel Reeves, “must immediately scrap her jobs tax” and is calling on the chancellor to overhaul the “broken” business rates system to unleash growth in the local area.

The Bath MP has also put her full support behind local businesses, having previously discussed the impact of the tax hike with local CEOs of the Boston Tea Party, which has two cafés in Bath, Cannon Clarke, a family-run business with expertise in waterproofing, and TONIQ, a small independent gym in Bath.

Mrs Hobhouse said: “The Chancellor’s jobs tax is setting already stretched household finances up for another battering right in the middle of a cost of living crisis. After years of Conservative economic vandalism, this Labour government is now risking leaving local businesses on the brink of closure.

"The Government cannot go on pretending that their jobs tax won’t hit people’s pockets. Our town centres and hard-working business owners will bear the brunt of this crushing decision.

“The Chancellor must immediately scrap her jobs tax and overhaul the broken business rates system. This is the only way to unleash the massive growth potential of Bath’s high streets and protect local household finances.”