Greater Manchester Chamber of Commerce has sent a letter to Chancellor Rachel Reeves highlighting concerns about rising costs facing businesses as measures from the budget, announced last October, take effect in April.
The letter, signed by Chamber President Emma Holt (pictured) on behalf of the Chamber’s Local Presidents and Vice-Presidents – most of whom are local business owners, sets out some of the evidence captured by the Chamber on the challenges businesses are facing in Spring.
Emma said: “Without a doubt the rise in Employers National Insurance Contributions is the main cause for concern with businesses alongside the new Minimum Wage rates leading to significant increases in employment costs. This isn’t just affecting larger businesses; small and medium-sized businesses are facing additional costs of tens of thousands of pounds annually moving forward. The NIC changes will have a disproportionate impact on part-time and workers in lower skilled jobs which is neither welcome nor wanted.
“Many businesses are reassessing their recruitment plans, with some considering workforce reductions or price increases, which contradicts the government’s goals for growth, employment, and low inflation.
“The government clearly wants growth and needs the revenue to deliver this. Naturally, we all desire growth, fair wages, and a prosperous economy. But the whole environment that business operates in has to be right and these measures will have the opposite effect making things more challenging and growth less likely.
“We understand that this increase will not be reversed but have suggested a phased introduction rather than implementing it all in April or some form of incentive to reduce the amount paid by business if they recruit staff.
“The letter is from the whole Presidential team at the Chamber largely made up of business owners and leaders right across Greater Manchester and from all size of business and sectors. It shows the strength of feeling about this and the unifying effect it has had on the people who will, at the end of the day, be the ones responsible for driving growth.”
