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Chancellor admits it won't be 'easy' for business to absorb costs of national insurance hike

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Rachel Reeves also declines to rule out tax rises over the next few years - despite making the promise just last week.

The chancellor has admitted it will not be 'easy' for businesses to 'absorb' the increase in employers' national insurance contributions that was announced in the budget. Rachel Reeves also acknowledged that the change - which will see employers' contributions rise to 15% from April 2025 - would also hit charities and local councils.

On Monday celebrity chef Tom Kerridge warned that the national insurance hike could lead to a 'huge amount' of restaurant closures. Mr Kerridge was one of a number of business figures to endorse Labour during the general election. But speaking to the Politics Hub with Sophy Ridge last night, Mr Kerridge said he believed the change will cost around £800-£850 more per employee per year for businesses like his. 'There will be a huge amount of closures,' he warned.

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