The increase in employer national insurance rates threatens to hamper agencies’ ability to contribute towards hitting the government’s economic growth targets – that’s the broad reaction to Labour’s first budget. Rachel Reeves delivering her 'big' budget at Westminster Rachel Reeves delivered what is being called her ‘big’ budget in parliament today, and her wide-ranging statement outlines the various fiscal measures the government implements as it aims to close the reported £40bn UK public services funding gap. The chancellor insisted members of the public won’t see any tax increases in their own wage packets and also announced that from 2028/29, national insurance thresholds will be raised in line with inflation.
However, employers and business owners are set to be burdened with an increase in national insurance tax rates, coupled with a reduction in NI thresholds and a rise in business rates. In response, IPA director-general Paul Bainsfair highlights the tension between the government’s ambitions and the financial reality facing agencies. The agency trade body boss expresses concern that increased employer national insurance rates may hamper the ability of agencies to grow, despite their role as “growth engines.
” Bainsfair says: “The change to employer national insurance contributions represents a very significant increase in the cost base of agencies and threatens their ability to facilitate the growth the government says it is prioritizing. More.
