A growing number of businesses in Yorkshire and the Humber are planning job cuts in response to higher employer national insurance contributions introduced in April, according to a new survey of mid-to-large firms.
The report, conducted by accountancy and advisory firm S&W, found that 33% of the 500 UK business owners surveyed said they are preparing to reduce headcount, citing increased labour costs linked to the NIC hike. Around 20% have already taken this step.
The recent rise saw employer NICs increase from 13.8% to 15%, alongside a raised earnings threshold. The change coincided with higher national living wage requirements and reduced business rates relief for certain sectors, compounding the pressure on employers’ cost bases.
In response, 46% of respondents said they intend to increase prices, 35% plan to cut staff hours, and 29% expect to freeze pay. Many also pointed to broader challenges including elevated energy and commodity prices and ongoing economic volatility.
The findings reflect mounting concern among businesses with turnovers of £5 million and above, as they balance rising payroll liabilities with the need to maintain competitiveness.
