Business leaders warn Budget tax hikes could trigger higher prices

"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."

"Almost half of small and medium-sized businesses (49 per cent) said they would raise prices if employment costs increase, while 33 per cent said they would delay hiring and 24 per cent would consider redundancies, according to Employment Hero's findings. The report also noted that many small firms are still recovering from the effects of Reeves's first Budget last year, which 72 per cent of leaders said negatively impacted their business."

Eighty-six per cent of 1,000 business leaders express worry about the upcoming Autumn Budget and 59 per cent believe government fiscal policy overlooks small business needs. Employer National Insurance contributions rose from 13.8 per cent to 15.05 per cent in April, which many SMEs report has strained finances. If employment-related taxes increase, 49 per cent would raise prices, 33 per cent would delay hiring, and 24 per cent would consider redundancies. Seventy-two per cent report negative effects from last year’s Budget. Employment rose 2.3 per cent month-on-month in October and 1.9 per cent year-on-year, showing labour market resilience. Higher employment costs risk harming growth and inflation control.

Read at Business Matters