National Insurance Hike Raises Concerns for Cornish Tourist Industry After Flambards Closure

Leaders of tourist attractions in Cornwall have stated that an increase in National Insurance (NI) contributions is intensifying pressure on the sector. Flambards theme park in Helston announced its closure on Monday, citing escalating costs and declining visitor attendance. This news follows the recent permanent closures of Dairyland and the Dingles fairground museum. Managers of other tourist sites across Cornwall expressed dismay at the closure of major attractions like Flambards, attributing a “crippling” impact on the industry to the National Insurance contribution hikes unveiled in the recent Budget. HM Treasury has been approached for a statement regarding these concerns. In the Budget, Chancellor Rachel Reeves declared that employers would be required to contribute National Insurance at a rate of 15% on salaries exceeding £5,000, a change from the previous rate of 13.8% on salaries above £9,100. Ms Reeves stated that this measure is projected to generate £20bn annually, although several business proprietors have voiced criticism of the policy. Nick Reynolds, who directs Paradise Park in Hayle, described the closure of Flambards as “tragic” and noted that the National Insurance adjustments introduced an additional burden following years of challenges. Mr Reynolds commented: “The National Insurance increase from the Budget is just going to cripple us and we’re all struggling with the new rate.” He added that his establishment was among numerous businesses “struggling a lot” and facing an uncertain future. He stated: “We’ve got 55 staff here and 1,300 birds, and we’re looking down a tunnel which we hope to come through next year.” Trevor Broome, who serves as joint non-executive chair of Visit Cornwall and general manager of Land’s End Landmark, described the current period as highly challenging, attributing it to a “perfect storm” of factors, including recent adverse weather, a decline in visitor attendance, and escalating expenses. Mr Broome further suggested that the rise in National Insurance could prove to be the breaking point for businesses already encountering hardships. He remarked: “The Budget has not been kind to some of the small businesses, particularly the National Insurance rise, which is going to be very difficult for a lot of businesses to absorb.” Readers were directed to follow BBC Cornwall on X, Facebook, and Instagram, and to send story ideas to spotlight@bbc.co.uk. The article included a copyright notice for BBC 2024, asserting all rights reserved. It also contained a disclaimer stating that the BBC is not accountable for the content of external sites and provided details on its external linking policy.