Increase in Employers' National Insurance Contributions

The budget introduced a significant rise in Employers' National Insurance contributions, increasing the rate from 13.8% to 15%. This change is expected to generate substantial revenue for the government, impacting many employers, particularly within the NHS. Additionally, the threshold for when this tax begins will decrease from £9,100 to £5,000, meaning more employees will be subject to this charge. For example, an employee earning £30,000 will see an increase in costs for their employer of about £866 annually, raising concerns for GP practices that may struggle with funding in the wake of these changes.