Employment Hero warns business leaders to avoid increasing employment costs in the Autumn Budget, due to the possibility of price rises, according to a recent survey.

Ahead of the Autumn Budget, Employment Hero is urging the Government to avoid increasing the cost of employment. According to new research, 1 in 2 small business leaders would consider raising prices if employment costs, such as employer NICs, were to increase. The survey, commissioned by Employment Hero, also found that 86% of businesses are concerned about the impact of the upcoming Budget on their company, while 59% of owners feel that Budget decisions do not take into account the needs of small businesses.

The risk of increasing employment costs is highlighted by Employment Hero’s real-time data, which shows continued recovery in the UK labour market. In October, employment saw a 2.3% rise compared to September, and a 1.9% increase compared to the same time last year. This indicates that SMEs are showing resilience despite the uncertain economic climate.

However, the impact of the previous Budget in October 2024 is still being felt by businesses, with 72% of leaders reporting that the announcement had an impact on their company. Employment Hero’s platform data shows a distinct u-shaped curve in employment rates over the past 12 months, with a sharp dip following the Budget, a slow recovery, and year-on-year growth still below pre-April 2025 levels when the Budget reforms were implemented.

Kevin Fitzgerald, UK Managing Director at Employment Hero, warns that taxing small businesses will have a domino effect, leading to higher prices, fewer jobs, and less money in people’s pockets. He urges the Government to learn from past mistakes and not penalize businesses that power the economy. Instead, he suggests that supporting small businesses will lead to job growth and inflation control.

The Employment Hero Monthly Jobs Report, powered by data from close to 5,000 businesses and 105,000 employees, reflects the SME labour market in the UK. A separate survey of 1,000 business owners and senior leaders in small-medium sized businesses (employees 5-499) was also conducted by leading research provider One Poll on behalf of Employment Hero to understand perspectives ahead of the November 2025 Budget announcement.

Employment Hero is a global authority on employment, offering an Employment Operating System (eOS) that simplifies and optimizes every stage of the employment process. Its platform serves over 350,000 businesses and manages more than 2.5 million employees worldwide, reducing administrative burdens by up to 80%. The company’s goal is to make employment easier, more valuable, and rewarding for everyone.