IoD press release  Change of policy direction needed to drive growth and jobs

“Today’s data shows a further softening in the labour market, with a decrease of 10,000 in payrolled employees on the month and an increase (0.1%) in the unemployment rate.

“Taken together, the Employment Rights Bill, the increase in employer National Insurance Contributions, and above-inflation increases to the National Living Wage are having the very impact businesses have been warning about for a long time: directly increasing the cost and risk of employing staff and undermining job creation.

“An IoD survey of 588 business leaders in September found that half of businesses which saw an increased National Insurance bill from April have responded by reducing employment. At the same time, the government’s refusal to engage with sensible amendments made to the Employment Rights Bill has sent a clear signal to businesses that their concerns are being ignored.

“A change of policy direction is needed if the government is to meet its target of stimulating growth and supporting businesses to create jobs. The Chancellor should avoid levying additional taxes on business in the forthcoming Budget, and the government should begin to engage meaningfully with employers to minimise the damage that the Employment Rights Bill will do to job creation and economic growth.”

Full Results

588 responses from across the UK, conducted between 12-29 September 2025. 12% ran large businesses (250+ people), 21% medium (50-249), 27% small (10-49 people), 28% micro (2-9 people) and 12% sole trader and self-employed business entities (0-1 people).

Have the changes to employer National Insurance in last year’s Budget increased or reduced your employer National Insurance bill?

You said the changes have increased your employer National Insurance bill. How have you responded?