Budget 2024 – Majority of businesses expect negative impact from national insurance increase

Chancellor Rachel Reeves has announced a rise in employers’ National Insurance contributions as part of the Autumn Budget. From April 2025, the National Insurance rate for employers will increase to 15%, up by 1.2 percentage points. 

In light of these changes, YouGov surveyed 1,000 UK business decision-makers through B2B Omnibus to assess their awareness and gauge their expectations for its impact on business finances. According to the survey, 71% of business leaders were aware of the increase in employer contributions. When asked about the potential financial effects on their businesses, responses varied significantly depending on the size of the business.

Overall, 58% of business leaders anticipate a negative impact on their business finances due to the increased National Insurance contributions. This sentiment is strongest among small businesses, with 69% expecting a negative impact, and among micro businesses, with 60% voicing similar concerns. In contrast, larger companies appeared more resilient to the change, with 54% of medium-sized and large businesses expecting a negative impact. 

Meanwhile, only 23% overall felt the increase would have a positive financial effect on their business. This figure was higher among large businesses, with 31% predicting a positive outcome, while microbusinesses were the least optimistic, with only 8% foreseeing a positive impact. Some 13% of business leaders say the change would make no difference to their financial standing.

The survey highlights a concern among small and micro businesses, who are less able to absorb cost increases, particularly in a challenging economic climate. The raised National Insurance contributions, coupled with a lower threshold, represent an additional cost pressure that many businesses are cautious about.

Methodology: YouGov Surveys: Serviced provide quick survey results from nationally representative or targeted audiences in multiple markets. This study was conducted online on 21-29 October 2024 with a nationally representative sample of 1,000 business decision makers in Great Britain (aged 18+ years), using a questionnaire designed by YouGov. The figures have been weighted and are representative of British business size and region.