Dorset businesses ‘seriously concerned’ over national insurance hikes - survey

Results of a new survey have exposed the depth of distress among businesses in Dorset about the impact of a hike in employer national insurance (NI) payments.

Some 91 per cent of respondents in the Dorset Chamber poll said they were concerned about the rise due to take effect in April, which is expected to generate £25 billion a year.

Many warned that they’ll be forced to freeze recruitment and pay rises, cut jobs or halt investment.

From April, employers will have to pay NI at 15 per cent on salaries above £5,000, instead of 13.8 per cent on salaries above £9,100 currently.

The chamber – Dorset’s leading business support organisation – has written to chancellor Rachel Reeves and Dorset MPs about the survey results.

It’s also invited the chancellor to visit Dorset to speak to those businesses set to be hardest hit by the hike.

Ian Girling, chamber chief executive, said: “In what’s already an extremely challenging business climate, these findings reflect very serious concerns around the impact of these increases.

“Many are around sustaining and growing employment, future pay rewards for a workforce that already faces severe cost of living increases, business growth and investment and, ultimately, the survival of many businesses.”

A wide range of businesses and employers from different sectors took part in the survey.

58 per cent of respondents said they were ‘very concerned’ at the increases, while 33 per cent were somewhat concerned.

54 per cent said they’d be unable to make pay rises; 45 per cent expected to be reducing their investment; and 42 per cent believe they may have to cut jobs.

Comments from businesses have been included in the letter from Dorset Chamber to Rachel Reeves and MPs, which reads: “We fully appreciate that public services need to be funded.

“However, the results highlight a clear need for policies that promote business growth rather than indiscriminate taxation that affects all businesses, regardless of their financial stability.

“We would very much like to invite you to Dorset to meet with our business community to discuss these issues and urge you to consider the implementation of a more business-friendly approach rather than measures that inhibit business growth and sustainability.

“The NI rises come as businesses also face the prospect of employment law changes as part of the government’s ongoing tax on jobs and growth.

“It will have a double-whammy impact which has the potential to severely affect businesses and the local economy.

“As well as the chancellor, we are very keen to hear from our MPs about this issue and about how they are going to stand up for business in the county going forward.”

Dorset’s MPs are Sir Christopher Chope (Christchurch), Neil Duncan Jordan (Poole), Lloyd Hatton (South Dorset), Tom Hayes (Bournemouth East), Simon Hoare (North Dorset), Edward Morello (West Dorset), Vikki Slade (Mid Dorset and North Poole) and Jessica Toale (Bournemouth West).