David Chadwick has called on the UK Government to scrap the “misguided” hike in employers’ National Insurance Contributions (NICs) for local small businesses.

The call from the Liberal Democrat MP for Brecon, Radnor and Cwm Tawe comes as recent polling from the party reveals that 56 per cent of people in Wales expect more local businesses to close as a result of the move.

Polling also revealed that 62 per cent of people in Wales expect prices to increase in local small businesses due to the hike.

From April 2025, employers will pay NICs on an employee's earnings above £5,000 at the rate of 15 per cent - up from the 13.8 per cent on salaries above £9,100 (the current threshold).

This is anticipated to raise an additional £25bn a year.

Chancellor Rachel Reeves said the rise in National Insurance was "difficult", but the right choice in order to fund public services.

Mr Chadwick says the government needs to “urgently rethink” the hike and scrap it for local small businesses in Wales.

It comes as the MP voted against the government’s tax hike earlier this month.

“Small businesses are the backbone of our community and we need to be doing all we can to support them here in Wales,” said Mr Chadwick.

“I have already heard from many in our local area who have sounded the alarm over the government’s misguided rise in employers’ NICs and these figures lay bare just how many people in our community are worried about the impact too.

“After years of the Conservative Party’s economic vandalism making it harder for businesses, this tax hike is the last thing that they need.”

Mr Chadwick said the government should begin thinking of ways to support small businesses and “not make life even harder for them”.