Autumn Budget 2025: Employment Hero warns tax hikes could push firms to cut jobs

Employment Hero has urged the Government not to increase employment costs in the Autumn Budget, warning that higher taxes such as employer NICs could risk job growth and increase pressure on prices.

The call comes as new survey data revealed widespread concern among small business leaders.

According to Employment Hero’s research, 86% of businesses were worried about what the Budget will mean for them, while 59% of owners said they do not believe small firms are taken into account when Budget decisions are made.

Asked how they would respond if the cost of employment increased, half of business leaders (49%) said they would consider raising prices.

A third (33%) said they would delay hiring, and almost a quarter (24%) would consider redundancies.

The findings pointed to potential implications for the labour market and consumer prices if employment-related taxes are raised.

Employment Hero’s real-time platform data indicated that the labour market has been recovering. Employment rose by 2.3% in October compared with September and is up 1.9% year-on-year, suggesting resilience among small and medium-sized enterprises (SMEs) despite ongoing uncertainty.

However, the impact of the October 2024 Budget remained significant for many organisations.