More than half of companies plan to raise prices by early April, says research
A survey of more than 4,800 firms found that 55 per cent of them expect prices to increase in the next three months, up from 39 per cent in a similar poll in the second half of 2024. The research, by the British Chambers of Commerce, comes after Labour announced an increase in taxes related to employing people in the October Budget. Chancellor Rachel Reeves said companies will have to pay more in national insurance contributions (NICs), while also raising the minimum wage. The tax increase is designed to help pay for improvements to services like the NHS and public transport.
But it has come in for criticism from some business groups, who say it is making it harder for them to hire people. Three-quarters of companies said the cost of employing people is their main cost pressure. The survey also found business confidence has fallen since the spending statement, with 49 per cent of firms saying they expect turnover to grow in the next year, down from 56 per cent last year.
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Hide AdThe group’s director-general, Shevaun Haviland, called the situation “a pressure cooker of rising costs and taxes”.
“Firms of all shapes and sizes are telling us the national insurance hike is particularly damaging,” she said. “Businesses are already cutting back on investment and say they will have to put up prices in the coming months.”
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