Director Weekly Three key findings from our latest policy research

The February edition of the IoD’s Policy Voice survey sheds light on how directors assess the challenges facing their businesses and the UK economy – and what the government should be doing across multiple policy fronts.

Here are three key findings.

1. Higher National Insurance Contributions are set to hit employment

The increase in employer National Insurance Contributions kicks in with the start of the new tax year in April. It’s clear this will have a big impact on business: 82.5% of respondents told us their National Insurance bill will increase.

The key question is how business responds. Worryingly, the most common plan is to reduce employment – identified by 47%. That has replaced lessening wage increases, which was the top response in November 2024.

While many businesses (29.6%) now plan to take a hit in the shape of lower margins, more – 40.9% – expect to increase prices. This week’s CPI data shows inflation to be lower than expected – yet this could add to remaining inflationary pressures in the economy.

IoD members have been forthright in their views on the impact of the NICs changes – and other measures. One director in South East England, in the information and communications sector, told us: “With the National Insurance increases and the planned changes to employment rights, we have… chosen to recruit in our international offices instead of the UK for many roles.”

2. Rail, nuclear power and roads top directors’ infrastructure priorities

With the government’s Infrastructure Bill introduced to Parliament this week – and the 10-year Infrastructure Strategy due in June – our results also provide a timely view of directors’ priorities.

Investment in rail, nuclear energy and roads top the list.

There is a widespread view that investment needs to flow across the UK – not only in the South East. “Connectivity between cities in the UK is imperative, which is different to a city being connected to London,” said one respondent.

3. Mentoring and childcare are needed to support female entrepreneurs

This week also sees the Women and Equalities Select Committee conclude its call for evidence on ways to increase female entrepreneurialism. We sought IoD’s members’ views.

Mentorship tops the list – making the IoD’s Mentor Connect programme a great option. For government, the biggest priority is improving access to childcare.

“Childcare is key to freeing capacity amongst women entrepreneurs,” as one director in the services sector told us. “If I had not had a partner who was prepared to do his fair share of the childcare, it would not have been possible to manage the hours and the travel.”

As ever, we’re using all of the Policy Voice results to shape the IoD’s policy positions – and to represent directors’ viewpoints in our discussions with government.

Find the full results – including IoD members’ views on Apprenticeships, the UK Internal Market, and the outlook for the UK economy – here.