More companies have been forced to raise prices following Labour’s raid on employers’ national insurance contributions

Labour’s raid on employers’ National Insurance Contributions (NICs) has led to a sharp rise in companies looking to raise prices, official figures revealed yesterday.

The Office for National Statistics (ONS) said the proportion of businesses planning to increase prices in the next month has risen from 11 per cent to 15 per cent.

And the biggest reason for this was the increase in labor costs – reportedly 39 percent higher. Several businesses said they would be hit by the rise in national insurance, the ONS said.

There was also a significant increase in the number of businesses saying their main concern for the future was taxation, which rose from 10 percent to 14 percent.

It is the latest evidence that Rachel Reeves’ £25 billion raid on employers’ networks is taking a heavy toll on British business.

The chancellor has increased the rate from 13.8 per cent to 15 per cent and lowered the threshold for paying it from £9,100 to £5,000.

The ONS figures, compiled in response to the Budget, come after more than 80 retailers wrote to Reeves this week to warn of job losses, store closures, lower wages and higher prices.

Research by asset manager Evelyn Partners, which surveyed 500 entrepreneurs in September and October, shows that 31 percent are considering dismissal in the coming year.

The survey also found that 30 percent said they were unlikely to be able to pay off their debts in the next 12 months.

Claire Burden, head of the advisory team at Evelyn Partners, said: ‘The cumulative impact of inflation in recent years continues to hit businesses hard.

“Many industries have failed to pass on the full extent of cost increases, leaving some businesses struggling to survive. The recent budget has put more pressure on businesses to prepare for rising costs.

‘Businesses in labour-intensive sectors, such as the hospitality industry, will be hit particularly hard and some businesses will struggle to stay afloat.’

Labor has been criticized for National Insurance. Andrew Goodacre, boss of the British Independent Retailers Association, said Reeves risked causing the ‘destruction’ of the High Street.