The UK Spring Statement delivered by Chancellor Rachel Reeves has sparked growing concern among business leaders, particularly in light of the upcoming rise in National Insurance contributions. With no new relief measures announced, many fear the government is placing greater strain on employers while calling for growth and productivity.
“You Can’t Put More Stones in Someone’s Pockets and Tell Them to Run Faster”
Andrew Warren, Chief Commercial Officer at Node4, described the increase to employer National Insurance contributions as a “seven-figure tax” on UK businesses.
“It will inevitably cause friction,” he said. “Companies will be slower to hire, more reluctant to spend, and forced to reduce investments, ultimately slowing down innovation and growth. You can’t put more stones in someone’s pockets and tell them to run faster – and this is essentially what the government is doing.”
Warren also criticised the lack of consistent support and funding behind policy promises. “To help businesses truly drive growth, there needs to be clarity, consistency, and execution at all levels,” he added.
Retailers Face a £7 Billion Cost Surge
Mark Williams, Managing Director EMEA at WorkJam, echoed Warren’s concerns, pointing to the combined impact of National Insurance increases and the rising National Living Wage.
“With no tax relief initiatives announced and employer NICs about to rise, UK retailers are facing an additional £7 billion in annual costs,” Williams said. “It’s inevitable that many businesses will respond by halting recruitment or initiating redundancies, which only deepens the strain on the economy.”
Williams urged companies to move beyond basic cost-cutting and focus on long-term efficiency. “Organisations need to go beyond CAPEX reductions and look at workforce optimisation and operational improvements.”
Technology as a Lifeline
Williams emphasised the importance of technology in maintaining resilience while protecting the employee experience.
“Tools like automation, flexible scheduling, and self-service systems allow companies to do more with less,” he said. “They empower employees with control over their schedules, which boosts satisfaction, reduces turnover, and frees up managerial time. In the long run, that saves on recruitment costs and increases productivity.”
An Unbalanced Message
While the Spring Statement may have aimed to project fiscal discipline, its lack of direct support for employers raises concerns about whether current government policy is truly aligned with its own growth agenda.
With employment costs on the rise, many businesses are looking to technology not just as a way to cut costs, but as a strategic investment in resilience, productivity, and long-term sustainability.