Greater Manchester Chamber of Commerce has written to Chancellor Rachel Reeves, warning of the financial pressures facing businesses as measures from last October’s budget take effect in April.
The letter, signed by Chamber President Emma Holt on behalf of the Chamber’s Local Presidents and Vice-Presidents—many of whom are business owners—outlines concerns over increasing costs, particularly those related to employment.
Holt spoke of the impact of rising Employer National Insurance Contributions (NIC) and the new Minimum Wage rates, which she says will lead to significant cost increases for businesses of all sizes. Small and medium-sized enterprises (SMEs) in particular are expected to face additional expenses amounting to tens of thousands of pounds annually.
Impact on Recruitment and Growth
Holt warned that the NIC changes will disproportionately affect part-time workers and those in lower-skilled jobs, noting that businesses are already reassessing their recruitment plans, with some considering workforce reductions or price increases. These measures, she argues, could run counter to the government’s aims of promoting growth, employment, and low inflation.
“The government clearly wants growth and needs the revenue to deliver this,” Holt stated. “We all want fair wages and a strong economy, but the environment businesses operate in must support that. These measures will make things more challenging and growth less likely.”
Call for Phased Implementation
While acknowledging that the NIC increase will not be reversed, the Chamber has suggested a phased introduction to ease the financial burden. It has also proposed an incentive scheme to reduce costs for businesses that hire new employees.
Holt added that the concerns raised in the letter reflect a broad consensus among leaders across Greater Manchester businesses.
“The letter is from the whole Presidential team at the Chamber, made up of business owners and leaders from all sectors and business sizes,” he said. “It demonstrates the strength of feeling on this issue and the unifying effect it has had on those responsible for driving growth.”
