Spring Statement | HR experts warn of growing pressures ahead of April changes

While the Government’s Spring Statement avoided major new surprises, HR and business leaders are urging caution as previously announced employment costs loom.

Chancellor Rachel Reeves’ first Spring Statement offered little in the way of headline-grabbing announcements for employers - especially when compared to the Autumn Budget, which hiked employer National Insurance and minimum wage rates. Yet despite the subdued tone, HR experts say the cost burden on employers remains real, and some are disappointed at the lack of further support to help firms absorb the changes set to take effect from April.

'No relief' on rising employment costs

One of the most pressing concerns among business leaders remains the increased cost of employing staff. From April, employer NICs will rise to 15% on salaries above £5,000 — a significant jump from the previous 13.8% rate. Alan Price, CEO at BrightHR, welcomed the Chancellor’s confirmation of no additional tax hikes, but said many small firms are already struggling.

“Small business owners across the country will have breathed a huge sigh of relief… [but] businesses are going under every day in the UK,” he warned. “We’re likely to see a dramatic increase in this over the next few months as the reality of employer NICs, increases to statutory pay for National Minimum Wage, SSP, maternity and paternity pay all start to be seen.”