The Reeves Budget included changes to NI thresholds which will have a big impact for companies employing 1000s of staff in the UK, which includes companies of all sizes in the software, insurtech, broking and insurance sectors. It also puts a brake on hiring in the future, as one director of an SME told the BBC recently,
” Kate Lester, the founder and boss of Diamond Logistics in Guildford agreed that higher costs would “make us think twice about employing additional people”.
The most recent figues for GDP were released a few days ago, showing a slight contraction in the UK economy. Maybe the usual January round of recruitment across the insurance sector will be scaled back? Here are some comments from the CBI;
Ben Jones, Lead Economist, CBI, said:
“Following these disappointing figures, businesses will be glad to see the end of 2024. Nevertheless, firms remain hopeful that things will improve in the New Year.
“It may take a few more months for firms to work through the impact of the sharp increase in employment taxes outlined in the Budget and adjust their hiring and investment plans accordingly. But businesses can probably still look forward to a steady, if unspectacular, economic recovery next year as the impact of the inflation shock fades and interest rates come down further.
“The Government can support business confidence by accelerating measures that could restore some headroom for investment. These include delivering flexibility to the Apprenticeship Levy, preparing a faster timetable to reform business rates and working in full partnership with boardrooms to develop a long-term modern industrial strategy that can provide the stability and certainty needed to unlock innovation, investment and grow the economy.”
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