According to a report by the British Chambers of Commerce (BCC) and AAB, UK businesses anticipate reduced recruitment and higher prices as increased employer National Insurance contributions take effect in April 2025.
Survey results show that 82% of businesses expect the tax hike to impact operations, with 58% predicting recruitment challenges and 54% expecting price increases. Additionally, 79% believe the government has not assessed the economic impact adequately.
East Midlands Chamber CEO Scott Knowles stated that businesses already facing prolonged economic strain will struggle with higher staffing costs, potentially limiting growth. The chamber’s survey found that over half of companies in the region expect to raise prices, and those revising hiring plans have doubled to 22% from the previous quarter.
Knowles urged policymakers to consider business concerns in the upcoming comprehensive spending review to support growth and economic stability.
