4 in 5 Brit businesses hit by rising employment costs
Around 4 in every 5 businesses have seen their costs increase this year through changes in employment legislation, according to a survey released today (Friday) by the British Chambers of Commerce (BCC).
BCC’s annual workforce survey of over 1,400 businesses and held in partnership with Middlesex University, reveals that pensions auto-enrolment, the National Living Wage and the Apprenticeship Levy have increased the cost base of businesses, and could lead to reduced opportunities for investment and wage growth.
The rise in the National Living Wage (NLW) in April of this year has increased employment costs for one-in-two companies (50%) in the UK. There appears to be a North/South divide, with firms in the North of England
(55%) and the Midlands (51%) more likely to be impacted by the National Living Wage than firms in the South (43%).
For the UK to remain an attractive and competitive environment going forward, action is needed to prevent unsustainable rises to the cost of doing business. The BCC is calling on the government to ensure no new upfront costs or taxes – which sap investment, growth and recruitment potential – are imposed on business for the remainder of this parliament.
