If the UK Government is serious about growth, then it cannot tax business any further, Director General of the BCC, Shevaun Haviland, is set to warn today.
At the BCC’s Global Annual Conference 2025, she will unveil new research showing the impact of the increase in National Insurance Contributions on firms.
The survey of more than 570 businesses – mostly SMEs – by the BCC Insights Unit, found that:
- One third of firms (32%) said they have either made staff redundant or are planning to as a direct result of the NICs increase
- Breaking the data out, 13% say they have already made staff redundant and 19% say they are actively considering redundancies
In her keynote address, Shevaun will urge the Government to use the BCC’s Blueprint for Growth to create a long-term platform to expand the economy.
Emphasising the importance of easing the cost burden to help business, Shevaun will say: “The size and scale of the rise in National Insurance Contributions took businesses by surprise.
“We were unprepared for the huge burden placed upon us, and it led many of us to rethink our growth plans. As a result, our business confidence measures have fallen to their lowest levels since 2022.
“For the government to achieve its Growth Mission, people need to stay in work and businesses need to invest. As always, businesses soak it up and move forward, but they feel like they are wading through treacle.”
Addressing the need to close the UK’s yawning skills gap, she will add: “In 1997, Tony Blair said ‘education, education, education’. The rallying cry for 2025 must be ‘skills, skills, skills’.
“Two thirds of businesses tell us they are facing skills shortages, and this is stopping their growth.
“They tell us too many young people turn up at their doors without many of the core skills they need for the world of work.
“We need to bring the workplace into education and our young people into our workplaces before they drop out of the classroom. It is vital we link up the worlds of education and business like never before.”
Urging the Government to buy British, she will say: “Government must use the power of its purse. It must buy British. We need government to keep its promise to boost British businesses through its infrastructure strategy, and to apply these rules to all areas of government procurement.
“Get this right and we can inject billions into the economy. Taxpayers’ money going back to taxpayers’ pockets.”
FTSE 100
The UK's flagship share index, the FTSE 100, was down 59 points at 8,726 shortly after opening this morning.
Brent crude oil futures were up 0.79% at $65.09 a barrel.
Companies reporting today:
Foresight Group Holdings - Full Year Results
Moonpig Group - Full Year Results
Patria Private Equity Trust - Half Year Results
Serco Group - Trading Statement