The Institute of Directors (IoD) recently published its Policy Voice Survey – February 2025, capturing the sentiments of UK business leaders amidst evolving economic challenges. A significant concern highlighted is the anticipated impact of increased employer National Insurance (NI) contributions.I
📊 Key Findings from the Survey
- 82.5% of respondents expect their employer NI bill to increase due to upcoming changes.
- 47.1% plan to reduce employment to offset higher costs.
- 40.9% intend to increase prices, potentially affecting competitiveness.
- 38.6% are considering lessening wage increases.
- 29.6% may absorb the increase through reduced margins.
These responses indicate a trend where businesses are making tough decisions to manage escalating employment costs, which could have broader implications for the UK economy.
💬 Business Leaders’ Perspectives
The survey includes candid feedback from directors:
“This change adds a significant cost to our business… The two changes combined (NI and Employment rights) lead us to delay recruitments and reduce staff where we can.”
Director, West Midlands, Services Sector
“Increased NI contributions might be the weight that finally pushes us under. We have already closed one company that is no longer viable.”
Sole Trader, Administrative Services
These testimonials underscore the real-world impact of policy changes on business operations and employment decisions.
✅ How we can help
At Francis Wilks & Jones, we support business owners and finance directors in enforcing their payment terms and recovering overdue invoices. Our approach is commercial, firm, and effective — all while maintaining your business’s reputation and ongoing relationships.
✅ Letter before action
We issue persuasive, professional letters before action that often result in quick settlement.
✅ County court proceedings
When needed, we issue and manage county court claims from start to finish — and act fast to obtain judgment which we can then enforce.
✅ High court enforcement
For unpaid judgments, we can escalate matters to enforcement using our panel of trusted High Court Enforcement Officers.
✅ Statutory demands
We issue statutory demands for undisputed debts over £750 or to enforce unpaid judgments — a strong tool to prompt payment or insolvency action.
✅ Winding up petitions
Used selectively, we file winding up petitions against corporate debtors to recover larger amounts, enforce unpaid judgments and apply maximum pressure.
✅ Freezing injunctions and asset protection
We can act urgently to protect assets at risk of being moved or hidden by uncooperative debtors. We specialise in freezing order applications.
✅ Pursuit of personal guarantees
Where director guarantees exist, we can take action to recover money due under them.
✅ International debt recovery
With our international partner firms, we help clients recover debts across borders and enforce foreign court decisions.
✅ Interest and late payment compensation
We calculate and add compensation under the Late Payment of Commercial Debts Act, increasing significantly the amount you can get paid.
✅ High-volume recovery
For firms dealing with regular overdue accounts, our volume-based debt recovery services offer streamlined legal support and reporting.
Our goal is to support businesses in navigating financial challenges and securing their operations against future uncertainties.
📈 Conclusion
The IoD’s February 2025 survey highlights the pressing concerns of UK businesses regarding increased employer NI contributions. Proactive measures, including effective debt recovery and financial planning, are essential to mitigate these challenges.
📞 Contact Francis Wilks & Jones for expert guidance tailored to your business needs.
