Firms rethink plans

Firms rethink their plans as taxes rise

The British Chambers of Commerce (BCC) has revealed that 82% of businesses are reconsidering their plans due to the impending rise in employers' National Insurance contributions. Chancellor Rachel Reeves has announced a 1.2 percentage point increase to 15% and a reduction in the salary threshold from £9,100 to £5,000, with this expected to generate £25bn annually by the decade's end. The BCC analysis, which polled around 1,300 firms, highlighted widespread dissatisfaction with government policymaking, with 79% believing the effects of new policies are not being properly assessed. Alex Veitch, director of policy at the BCC, said: "Firms are already telling us they are sitting on a powder keg of costs," indicating that many will need to raise prices and reassess recruitment strategies. He added: "Ministers need to read the room and recognise the impact this tax hike will have."