NICs rise has immediate impact

Research conducted by the British Chambers of Commerce (BCC) shows a large majority of employers have already been impacted by the increase in National Insurance contributions.

The survey of over 1,100 employers uncovered a series of negative impacts with firms saying the rise had increased staffing costs, forced some to put up prices and would also limit future investment. In total, four out of five firms said the increase had negatively impacted their business.

As part of its call for an Emergency Budget, the BCC has urged the Chancellor to reverse the increase for at least a year. This, it is argued, would give firms a chance to keep a lid on rising prices, boost productivity and ease cost pressures. 

BCC Co-Executive Director Hannah Essex said, “Businesses are telling us that the rise in National Insurance contributions has been a body blow as they try to get back on their feet. When firms are already facing a toxic mix of surging inflation, rising energy costs and supply chain disruption, this increase is very hard to swallow. But it is not too late to change tack and push the increase back until firms are in a better place to take on the extra burden.”