New rates due to take effect next April
RLB is the latest firm to warn about the impact of National Insurance (NI) rises for firms.
In its latest quarterly report on tender prices, the firm picked out the rise as one which will be a drag on companies next year.
鈥淚ncreases in tax-take are set to underpin increased government spending on public services, in the hope that GDP growth will be the saviour,鈥� it said.
But it added: 鈥淥f note, however, is the hike of National Insurance contributions, which will impose considerable additional costs across the board for employers.鈥�
The new rates of NI are due to come into force next April.
As of Q4 2024, RLB鈥檚 forecast tender price uplift for 2024 is 3.03%, slightly up from its previous quarter鈥檚 forecast of 2.97%.
Earlier this week, Arcadis said the NI rises could add an extra 1% to budgets while the Budget鈥檚 impact would delay a full recovery in the sector to 2026 instead of its previously forecast middle of next year. Last week鈥檚 PMI index also reported that industry optimism for the coming year was at its lowest level for 13 months as a result of the additional costs being put on employers.
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