Financial expert warns of job losses over Chancellor’s tax raid on employers NI hike – London Business News | Londonlovesbusiness.com

There is growing concerns for businesses over how changes to national insurance contributions could lead to job losses, although employees themselves are not directly impacted by the higher NICs, the increased costs for employers may lead to decisions which affect the overall workforce.

Businesses may respond by reducing staff, freezing recruitment and limiting pay increases, rather than in some cases reducing profits.

Some businesses may also consider their overall staff budgets and may choose to make some tough decisions, such as redundancies. How these changes affect businesses will differ, often depending on the size of the business.

Given the uncertainties about the decisions employers may choose to make, employees may find themselves experiencing feelings of anxiety and questioning how to handle pressure associated with potential layoffs or pay cuts.

Fears about job security or limited opportunities for pay increases may also create a sense of frustration as employees worry about budgeting during a period of uncertainty and financial concerns. In such a situation employees may want to consider joining a trade union, who can also often support their members through such changes.

Employers have a vital role to play in navigating this challenging period responsibly and compassionately. Open and transparent communication is essential. Creating forums for dialogue, whether through meetings, one-on-one check-ins, anonymous surveys, or engaging with trade bodies and representatives, can provide employees with a safe space to help manage stress and feelings of anxiety.

While the challenges posed by the NIC increase are real, how businesses respond will define the long-term impact on their workforce. Employers must recognise the impact on their workers and take proactive steps to provide support, including access to financial planning resources and mental health support programs, to help them navigate this period of uncertainty. Whether it’s accessing advice from a charity like caba or seeking out financial resources, there is support out there to help if you’re worried about the upcoming changes.