Business chiefs set to increase their prices after Labour’s National Insurance rise – hitting customers in the pocket
BUSINESS chiefs will increase their prices after Labour’s National Insurance rise, a survey shows.
Forty-nine per cent of firms will respond to Rachel Reeves’ £25billion raid on firms by hitting customers in the pocket.
And just over a quarter plan to cut staff.
But nearly a third say they can absorb the tax rise, Office for National Statistics figures show.
The survey comes after Bank of England chief Andrew Bailey told MPs that the NI increase will drive up inflation.
Meanwhile, the Chancellor is planning to slash spending by overhauling the welfare system.
Ms Reeves told the Electoral Dysfunction podcast it was a travesty that a million young people were not in training, employment or education.
Spending cuts worth billions of pounds in both the benefits bill and Whitehall departments are being earmarked in the Spring Statement later this month.
Sources indicated that the “world has changed” and the government’s £10 billion buffer has gone due to higher borrowing costs and trade tariffs.