The Hull & Humber Chamber of Commerce is set to raise concerns with government ministers over the looming rise in National Insurance contributions, warning that businesses across the region are feeling the strain of mounting costs.
Chamber representatives from Hull & East Riding, Goole, and North & North East Lincolnshire have reported growing unease among local firms, many of which are already grappling with inflation and rising energy bills. The additional burden of higher employer NI contributions, they say, could force some to reconsider recruitment plans, scale back investment, or pass on costs to customers.
Their concerns echo findings from a recent British Chambers of Commerce (BCC) survey, which revealed that 82% of businesses expect the NI increase to impact their operations. More than half of respondents—58%—said it could affect hiring decisions, while 54% anticipated raising prices to cope with the extra expense. Additionally, 36% suggested the hike would limit investment, and 30% warned it could disrupt day-to-day operations.
David Hooper, Director of External Affairs at the Hull & Humber Chamber, said the situation was becoming increasingly difficult for businesses:
“Businesses across the country are facing huge cost pressures from all sides, and our members are telling us these increases are causing real concern. Although we’ve seen a recent cut in interest rates, inflation is rising, and only today it was announced that the cost cap on energy prices had gone up more than expected.”
David added that many firms are now having to rethink their future plans, cutting back on training, pausing recruitment, or delaying investment. He warned that businesses already facing a tough financial climate would find the NI increase yet another challenge to overcome.
The Chamber has secured meetings with two government ministers in Hull over the coming weeks to highlight these concerns and push for measures to ease the financial strain on local businesses.
With firms under growing pressure, the Chamber is making it clear that without intervention, the NI hike could make it even harder for businesses in the Humber region to plan for long-term growth.