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06 Apr 2022

National insurance hike further fuels cost of doing business crisis, says East Midlands Chamber

Commenting on the increase to national insurance from 12% to 13.25% as of today (6 April), East Midlands Chamber chief executive Scott Knowles said: “The national insurance hike is yet another significant addition to the spiralling costs that have been hitting businesses for a long time now.

“The timing could hardly be worse, given that many organisations are struggling with the rising costs of raw materials, energy, fuel and staffing. Indeed, two-thirds (67%) of our region’s businesses in our Quarterly Economic Survey for Q1 2022 told us they will have to increase their own prices in the coming quarter to off-set the additional costs.

“Skills shortages across many sectors are hampering firms – while 63% of businesses attempted to recruit in the first quarter of the year, four in five (80%) of this cohort encountered problems with filling vacancies – and has led to many having to pay more for the skilled labour they do manage to find.

“Raising national insurance during a very real cost of doing business crisis adds yet another price pressure to companies that are already being squeezed at the margins – particularly in the past week amid the energy price cap rise and restoration of 20% VAT for the hospitality and tourism sectors.

“Without meaningful Government support, this will ultimately affect their ability to invest, grow and create new jobs.”