According to research carried out by the British Chambers of Commerce (BCC) four out of five employers have reported that they were immediately impacted by the recent increase in national insurance contributions (NICs)
More than 1,100 UK employers were surveyed by the British Chambers of Commerce (BCC) and they found that the recent national insurance contributions (NICs) increase has caused negative impacts to 81% of businesses surveyed.
The rise in employer national insurance contributions (NICs) from 13.8% to 15.05% has increased staffing costs, firms said, and had forced some to put up their prices and meant that they would be limiting their investment.
As part of its call for an Emergency Budget, the British Chambers of Commerce (BCC) said the rise should be immediately reversed for a minimum of 12 months, as firms battle surging costs on multiple fronts.
The British Chambers of Commerce (BCC) is calling for action from the government to give businesses a chance to keep a lid on rising prices, boost productivity and ease cost pressures.
Hannah Essex, Co-Executive Director at the British Chambers of Commerce (BCC), said: ‘Businesses are telling us that the rise in NICs has been a body blow as they try to get back on their feet. With firms’ profits also taking a further hit, after two years of the pandemic, it is no surprise that their investment intentions are also weakening.
‘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. The costs crises facing firms and people in the street are two sides of the same coin. If we can ease the pressure on businesses, then they can keep a lid on the price rises.’