Rachel Reeve’s National Insurance increases for employers have begun to impact the economy with more than half of business leaders saying they have already frozen or plan to put a stop to salary increases this year. One in five (22%) have already done with 29% planning to do so.

From April employers’ NI went up 1.2% from 13.8% to 15%, coupled with the damaging reduction in the secondary threshold from £9,100 to £5,000, creating a turbulent environment for businesses and employees hit by staff cuts.

One in five businesses have already cut jobs while 33% have pencilled in headcount reduction in their future plans, taking the total to 53%, found a survey of 500 business owners with a turnover of £5m plus, conducted by S&W, formerly Evelyn Partners.