National Insurance contributions are set to rise – is your Cambridgeshire business affected?

Cait Findlay
·1-min read
Rachel Reeves in the Commons as she delivered the Budget
-Credit: (Image: UK Parliament)


Rachel Reeves's autumn Budget included a controversial measure which many have said will hit businesses in the pocket. While taxes and National Insurance for employees will not rise, National Insurance contributions by employers will increase in April next year.

In her speech on October 30, the Chancellor said: "I say to working people, I will not increase your National Insurance, I will not increase your VAT, and I will not increase your income tax. Working people will not see higher taxes in their payslips as a result of the choices that I am making."

However, Ms Reeves said she had made 'difficult decisions' in her budget – including an increase in National Insurance contributions from employers. The rate of National Insurance contributions paid by employers will increase by 1.2 percentage points from April 6, 2025 – rising from 13.8% to 15%.

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A government spokesperson said: "To support small businesses with these changes, the government is increasing the Employment Allowance from £5,000 to £10,500 and removing the £100,000 threshold, expanding this to all eligible employers." The change is predicted to raise £25billion per year by the end of this Parliament.

We want to know how the increased National Insurance contributions will affect Cambridgeshire businesses. Let us know whether you agree with the National Insurance contribution increase in our poll below or at this link.

Comment below to share your thoughts with other readers – and get in touch with our reporters via email: newsdesk@cambridge-news.co.uk.

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