National Insurance: Firms to pay more than half of Budget tax rises

The government has pledged to be “pro-business” and has put growing the UK economy, in order to boost living standards, as its main goal.

But businesses have warned placing the tax burden on them will make investing, hiring staff and creating jobs, harder – and ultimately hit growth.

There are also concerns how tax rises on businesses can affect the workers they employ.

In some cases, companies could pass on the increased costs they face through higher prices to customers, however, workers’ wage rises could be restricted as employers look for savings.

The rise in National Insurance could also have an impact on other tax revenues, for instance if it results in smaller wage rises. If businesses absorb the extra costs, profits could be lower and the amount they pay in corporation tax could be less.

Big, multinational corporations, are likely to be able to take on and absorb the extra costs, but smaller, independent companies, are to be hit harder by tax rises.