National insurance rise will lead to job losses, pubs say

Hospitality businesses will be forced to close while others will have to slash jobs and investment as a result of changes to national insurance announced in the budget, according to a letter to the chancellor signed by the bosses of more than 200 of the UK's largest restaurant, pub and hotel companies.

- Joanna Partridge

The letter - with signatories including the Premier Inn owner Whitbread and pub and restaurant group Mitchells & Butlers - came as reports suggested Tesco would face an extra £1bn in costs over the course of the current parliament as the result of the increase in employers' national insurance contributions (NICs).

The annual bill for the supermarket chain, which has 300,000 UK staff and is the country's largest private employer, would be £250m, according to analysis from the US bank Morgan Stanley, which was first reported by the Sunday Times.