NICs rise will force businesses to close, warn hospitality bosses

More than 200 leading restaurant, pub and hotel companies say tax rises will cause unprecedented damage'

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 businesses.

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