Oh Dear- 30p is almost certain6 Feb 2025 12:20
BoE says employer NICs will hit economy harder than initially expected
The BoE said the Budget increase in employers’ national insurance contributions now looked likely to raise prices slightly more than its initial estimates, with a risk that it would also hit jobs more than expected.
The central bank’s forecasts show the unemployment rate rising to 4.8 per cent over the next year, 0.5 percentage points higher than its November projection.
Businesses answering the BoE’s Agents’ survey cited the Budget measures along with rising global uncertainty and an ongoing squeeze on cash as reasons to hold off investment and hiring.