Rising employer National Insurance contributions, set to take effect in April 2025, could force UK businesses to adjust hiring plans and raise prices, according to new research from the British Chambers of Commerce and professional services firm AAB.
The study found that 60% of businesses expect recruitment to be affected, while more than half anticipate increasing prices. Overall, 80% of firms believe they will feel the financial impact of the change.
East Midlands Chamber CEO Scott Knowles highlighted similar trends in the region, where 22% of businesses plan to revise hiring strategies—double the previous quarter’s figure. The chamber warns that the higher costs, combined with inflation, could hinder economic growth.
With a comprehensive spending review approaching, business groups urge policymakers to consider the impact on firms and introduce measures that support growth.
