National Insurance hike to cost firms extra £200,000 a year – report
A hike in National Insurance contributions will cost Greater Birmingham businesses an extra £200,000 a year, according to new data released today.
A Greater Birmingham Chambers of Commerce report reveals the increases announced in the Autumn Budget will lead to more than a quarter of firms decreasing their recruitment activity over the next 12 months.
And 70 per cent of businesses surveyed said the Budget will have a negative impact on them, with just 7 per cent expressing positive sentiment.
The report - ‘The Autumn Budget 2024 – Impact on Greater Birmingham Businesses’ – was compiled using additional data from the GBCC’s Q4 Quarterly Business Report survey.
More than half of surveyed companies are anticipating the need to increase customer prices.
When asked about interventions they would like to see from government to support business growth, firms said tax reductions, funding for skills training and support for innovation and technology adoption were their top three priorities.
Henrietta Brealey (pictured), CEO of Greater Birmingham Chambers of Commerce, said: “The Autumn Budget landed as businesses across Greater Birmingham sought stability after years of political and economic uncertainty.
“Our data reflects growing concerns over rising National Insurance Contributions and changes to the National Living Wage which simply add to the ongoing cost pressures many firms have faced for a number of years,
“While local businesses continue to display a noticeable streak of resilience, moving forwards, many are calling for the Government to commit to reforming the business taxation system in order to turbocharge growth and drive prosperity.”
The GBCC will present data from the report to key stakeholders.
