London Businesses Voice Their Worries About the New NI Hike
*Business Sentiment Shifts in the Wake of the Autumn Budget
After the Government unveiled the April 2024 swing to higher National Insurance (NI) contributions, a fresh Savanta poll of 500+ London firms revealed a split that sends a clear warning flag to policymakers.
- 51 % of businesses say the NI increase will hurt their profits.
- 47 % think the Budget will stifle UK growth.
- 46 % fear it will drag on London’s future economic upside.
- Only 27 % expect the Chancellor’s strategy to lift the UK economy.
- Less than a third (30 %) anticipate a boost for London.
Why the Numbers Matter
In plain English, London’s business community is feeling the pinch. With rising living costs, fishing through inflation, and a heavier borrowing bill, employers now find themselves squeezing the budget tight—no room for hiring, training, or innovation.
LCCI’s Recent Pulse Check Adds Fuel to the Fire
Only a few weeks after the Budget, LCCI research corralled opinions from 81 % of London business leaders who are uncertain that the Government will actually listen to their concerns. And 77 % doubt it will deliver on its promised growth revival.
A Call to Action for the Government
The chamber’s chief executive, Karim Fatehi OBE, urged immediate steps:
- Reform the unfair business rates system.
- Introduce an Employment Rights Bill that finds a balance between workers and employers.
- Reassure companies that no further taxes will be added to an already strained £ business.
With the Spring Statement and Spending Review looming, LCCI is demanding action now—not a “let’s talk later” answer. They want policies that fuel the recovery and restore faith in the UK’s future prosperity.
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