Derby: “The budget is encouraging, but there is uncertainty”

The Chancellor has committed to increasing the employer’s social security contribution from 13.8% to 15%. The threshold for paying them will fall from £9,100 to £5,000, an increase of £25 billion.

However, there is some relief for employers in that Employment Allowance – which allows companies to reduce their liability for National Insurance – will increase from £5,000 to £10,500.

Despite predictions that Reeves may continue to freeze income tax brackets beyond 2028-29, she said they would then rise in line with inflation.

Reacting to the budget minutes after it ended, Ms Guiqui said: “It’s good that we’re putting more public money towards a range of things – people have been under a lot of pressure over the last few years, especially since Covid. People have to work longer, children are away from home longer.