Rachel Reeves Raises National Insurance, Pressures UK Businesses
- Chancellor Rachel Reeves announced a rise in National Insurance rates in her latest Budget.
- Business leaders warn that these changes will increase costs significantly, with Sainsbury's facing a £140 million hit and BT reporting a £100 million rise in costs.
- The backlash from businesses indicates a risk of higher prices for consumers and calls into question the government's commitment to protecting working people.
In the latest Budget revealed by Chancellor Rachel Reeves, significant increases in National Insurance rates have raised concerns among major UK businesses. The new policy raises the employer’s National Insurance rate from 13.8% to 15% and lowers the threshold for contributions, creating additional financial burdens for firms. These changes are expected to influence pricing strategies, as industry leaders like Sainsbury's and BT report anticipated cost increases of £140 million and £100 million respectively. Additional challenges highlighted include potential job cuts and reduced pay for employees, undermining the government’s claims of supporting working people. Critics argue that the Budget is detrimental to private-sector growth, leading figures like former CBI president Lord Bilimoria to label it a 'lost opportunity' that ultimately hinders entrepreneurship and investment.