Overview

• S&W survey finds 20% of firms have already cut staff and 33% are planning more reductions following April’s rise in employer NICs from 13.8% to 15%.
• To cover the added tax burden, 46% of businesses intend to raise prices, 35% plan to reduce staff hours and 29% will freeze pay.
• April’s NICs hike coincided with a rise in the national living wage and reduced business rates relief, further squeezing company budgets.
• Around 60% of surveyed firms are accelerating automation investments to curb labour expenses and maintain operational efficiency.
• The government says it has shielded small businesses from the full NICs increase and capped corporation tax, but analysts warn of potential rises in unemployment, weaker business confidence and higher borrowing.