19 Jun 2025
Research carried out by market research firm Censuswide has revealed that a third of business owners are planning to cut jobs as a result of rising employer National Insurance Contributions (NICs).
46% of owners polled also stated they are planning to increase prices in order to help cover the costs associated with the rise.
20% of businesses surveyed have already reduced staff numbers and 35% indicated that they intend to reduce staff hours. 29% are considering freezing pay.
A spokesperson for the government said: 'We are a pro-business government. We are protecting the smallest businesses from the employer national insurance rise, shielding 250,000 retail, hospitality and leisure business properties from paying full business rates and have capped corporation tax.
'We delivered a once-in-a-Parliament budget last year that took necessary decisions on tax to stabilise the public finances, including the NHS, which has now seen waiting lists fall five months in a row.
'We are now focused on creating opportunities for businesses to compete and access the finance they need to scale, export and break into new markets.'