Can employers expect announcements in the upcoming Budget that increase employee costs?

RSM’s Susan Ball, partner and Charlie Barnes, director, and head of employment legal services, look at some of the options that may be under consideration for 30 October

Time for bold moves?

There have been reports that an increase in employers’ National Insurance contributions (NICs) is being contemplated. That may prove tempting given the relative simplicity of the measure and the fact it is potentially lucrative for the Exchequer.

A 1% increase in employers’ NIC rates from 13.8% to 14.8% is estimated by HMRC to generate a little under £8.5bn in additional revenue for the government in the 2025/26 tax year.

A key challenge however is that it could still be indirectly seen as a tax on workers, which Labour pledged in its manifesto not to increase, and may stifle growth.

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