IoD press release Employment reforms continue to stifle business hiring intentions

“Despite a small increase in payrolled employees, the continued decline in job vacancies and increase in the unemployment rate reflect weak business hiring intentions as a result of the Government’s employment reforms.

“Our data shows that half (47%) of business leaders facing higher National Insurance bills plan to reduce employment in response, and that business hiring intentions over the next year remain around lows last seen at the height of the COVID-19 pandemic.

“The Government missed an opportunity at Report Stage of the Employment Rights Bill to show that it has listened to business feedback about how to avoid the reforms damaging employment prospects.

“The Government’s Better Regulation Action Plan is a welcome shift in narrative, but such commitments will ring hollow if the principles are not first applied to its plans to increase the regulation and cost associated with employing staff.”

Full Results

687 responses from across the UK, conducted between 14-26 February 2025. 16% ran large businesses (250+ people), 17% medium (50-249), 25% small (10-49 people), 32% micro (2-9 people) and 10% sole trader and self-employed business entities (0-1 people).

Will the announced changes to employer National Insurance in the Autumn Budget increase or reduce your employer National Insurance bill?

You said the changes will increase your employer National Insurance bill. How do you plan to respond to the resulting higher costs of employment?

Comparing the next 12 months with the last 12 months, what do you believe the outlook for your organisation will be in terms of: