A third of UK businesses plan job cuts due to higher National Insurance contributions.

From Morningstar: 2025-06-17 04:20:00

A third of business owners are planning to cut more jobs due to higher National Insurance contributions in April. Some companies are also looking to reduce hours, freeze pay, and increase prices to cover increased tax payments. Chancellor Rachel Reeves announced a rise in employers’ NICs and threshold changes last year. 33% of business owners are still planning further staff cuts after the tax increase. Firms are looking at various measures to offset higher operating costs, including further price increases, reducing staff hours, and freezing pay. Many businesses are facing challenges due to higher costs and economic uncertainty, leading to difficult decisions to stay afloat. The government has implemented measures to support businesses, including capping corporation tax and providing relief for small businesses. Source: PA.



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