The overwhelming majority of businesses say the rise in employer National Insurance contributions will force them to change their plans, according to research due to be published by the BCC Insight’s Unit, in partnership with professional services firm AAB.
With under six weeks until the NI rise comes in, 82% of firms say the tax hike will cause them to rethink, with almost two-thirds (58%) saying it will impact recruitment plans. and more than half (54%) planning to increase prices.
More than a third of firms suggest investment (36%) and day-to-day operations (30%) will be impacted. Only 18% feel the rise is unlikely to cause any change.
The survey of 1,200 firms shows most are dissatisfied with the policy making process. Over three quarters (79%) of responding businesses do not feel the impacts of new policies are being properly assessed and only 14% believe they are.
A similar proportion, 77%, do not feel changes are moving at the right pace, while 16% do. But businesses were more likely to say they understood the rationale for policies – 42% said they understand why new policies are being made, although a larger proportion, 52%, did not.
The full report will be released at 10.30pm tonight.