Small businesses hike prices ahead of NICs rise According to a recent survey by Shawbrook, over 40% of the UK's small and medium-sized businesses (SMEs) anticipate that the Government's increase in National Insurance Contributions (NIC) will adversely affect their operations. The upcoming 1.2% rise, set to take effect from April 6, 2025, has prompted a third of SME leaders to consider or implement price increases for their goods and services. Neil Rudge, Shawbrook's chief banking officer, said: “In addition to the rise in National Insurance contributions for employers, a range of other policy changes will also impact SMEs, creating a challenging environment. Many businesses will likely respond by raising prices or reducing staff - strategies that could have far-reaching implications for the broader economy.”