UK business leaders have urged the government not to increase employment costs in the upcoming Autumn Budget, warning that higher taxes could force small firms to raise prices and worsen inflation.
A new survey by Employment Hero found that 86 per cent of 1,000 business leaders are worried about what the Budget will mean for their companies, with 59 per cent saying they believe the government does not take the needs of small businesses into account when setting fiscal policy.
The concern comes after employer National Insurance contributions (NICs) rose from 13.8 per cent to 15.05 per cent in April — a move that many SMEs say has already strained their finances.
If Chancellor Rachel Reeves raises employment-related taxes again, business groups say it could “damage the government’s mission to drive economic growth and control inflation.”
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