New data from a survey of over 500 London businesses polled by the London Chamber of Commerce and Industry reveals that half – 51% – believe rising employer National Insurance contributions will have a negative impact on their business.
The polling, conducted by Savanta, also found that 47% of businesses believe that the measures announced in the Autumn Budget will hinder UK economic growth, while 46% expect the Budget to have adverse effects on London’s future economic prospects.
By contrast, just 27% said that the Chancellor’s policies would improve UK economic growth and 30% said it would boost prosperity in London.
These damning figures highlight the continued negativity from the business community around key measures in the Budget.
Shortly after the Budget in December 2024, separate polling from LCCI revealed that 81% of London business leaders surveyed revealed they were not confident that the Government will listen to and address concerns from the business community, and 77% were not confident that the Government will deliver on its commitment to economic growth.
Ahead of the introduction of increased National Insurance rises and cuts to business rate relief on 1 April and the Spring Statement, LCCI are calling on the Government to act now to mitigate what is a perfect storm for London and the UK’s business community.
Karim Fatehi OBE, Chief Executive of the London Chamber of Commerce and Industry, said: “While we recognise that difficult decisions had to be made, it should now be clear to the Government that businesses are seriously concerned about the effects of increased National Insurance contributions.
“Having weathered a cost-of-living crisis, soaring inflation, higher borrowing costs, and trade tensions, businesses need the operating conditions conducive to economic growth, rather than measures that curtail their ability to invest in their business, hire new people and train their staff.
“We fully support the Government’s growth ambitions however businesses are sending a clear message clear that the measures introduced in the Autumn Budget will not help them invest, innovate and drive the prosperity needed to achieve this goal. They need decisive action, including reform of the unfair business rates system, an Employment Rights Bill that fairly balances the rights of employees with the needs of employers, and a clear pledge not to levy any more taxes on hard pressed British businesses.
“With the Spring Statement and Spending Review ahead, we urge the Government to introduce policies that enable businesses to fuel the economic recovery and restore confidence in the UK’s growth prospects.’
