Bank of England governor warns the ‘biggest issue’ is the response to the NI hike – London Business News | Londonlovesbusiness.com

The Bank of England governor Andrew Bailey has warned how businesses react to the Chancellor’s Autumn Budget is the “biggest issue” which is being monitored closely.

The main issue Bailey is referring to is employer’s national insurance contributions hike and there is uncertainty to how businesses react and there is fears that SMEs will stop hiring and will make staff redundant as they will not be able to afford the large financial increases.

Speaking at the Financial Times Global Boardroom Bailey said, “The level of uncertainty is rising at the moment. Certainly, some of that is domestic and some of that is global.

“I think the biggest issue now in the immediate future is the response to the national insurance change; how companies balance the mixture of prices, wages, the level of employment, what is taken on margin, is an important judgment for us.”