UK manufacturers are urging the government to reverse recent changes to National Insurance contributions and employment rights, warning that rising labour costs are squeezing margins and undermining confidence ahead of this week’s Budget.
A survey of 128 business leaders conducted by personalised workwear supplier MyWorkwear found that 88% want the Chancellor to rethink both NIC increases and new workers’ rights measures. Nearly two thirds (63%) of respondents said higher NICs and minimum wage rises had already had a negative effect on performance.
Almost half of firms (45%) fear they may not survive the next five years, underscoring the strain facing the sector. In a sign of political dissatisfaction, more than three quarters (77%) of management teams said they would not vote for Labour if a snap election were held.
James Worthington, Co-Owner of MyWorkwear, said the findings reflected mounting pressure across the industry. “We work very closely with thousands of businesses in the manufacturing sector to provide their PPE and workwear, and it’s fair to say that it’s been a challenging year for the industry,” he said.
He added that sentiment had weakened since the Autumn Statement of 2024. “Only 48% said their business fortunes had improved since then, whereas 52% said that there had either been no change, or things had worsened. With the Budget looming on the horizon, the results indicate that the current government can’t afford to get on the wrong side of business again with new tax rises and more regulation.”
Despite the wider caution, investment in branded workwear remains relatively resilient. It was ranked the internal cost least likely to be cut, and the second most popular brand-awareness tool after digital marketing.
