Minimum wage rises and a hike in employers’ National Insurance are due to come into force in April, creating concern across business and stalling growth plans. Office for National Statistics (ONS) data showed a decline in employment in December as a result of the Budget on 30 October.

Responses to an IoD survey conducted in January found declining levels of confidence, with businesses calling for a reduction in the tax burden as their major priority. Over 58% of the 687 respondents said this would improve confidence levels going forward.

However, it is unlikely this burden will reduce with employers’ National Insurance increasing to 15% from 1 April.

Analysis by financial services specialist Novuna has found that the hike in National Insurance could end up costing businesses £28bn a year, based on a conservative estimate, with the average increase per employee across all salary bands being £842. London businesses will end up paying the most on average, with an employee on the average salary in London costing £1,010 more over the year.