The research by the British Chambers of Commerce (BCC) surveyed more than 1,100 UK employers and found that the national insurance increase has caused negative impacts to 81% of businesses.

The main effects cited by respondents included increased prices for their services, planned investment for their businesses reduced or scrapped, and increased staff costs with employers expecting wages to increase by 5% over the next year.

The BCC stated that this increase, alongside the ‘toxic mix’ of surging inflation, rising energy costs and supply chain disruption, means it is ‘very hard to swallow’.

It also added that the tight labour market is already pushing up staff costs and that ‘the national insurance rise has only served to exacerbate that pressure without having a positive impact on recruitment’.

T