Tariffs and NI increases lead to caution among businesses

THE dual impact of National Insurance hikes and Donald Trump's tariffs led to caution among businesses in the second quarter of 2025, a new economic survey reveals.

- TAMLYN JONES Business Correspondent

Greater Birmingham Chambers of Commerce's Quarterly Business Report for Q2 is the first since the Government’s new National Insurance measures kicked in, which unsurprisingly had an impact on cashflow and labour costs.

However, businesses are reporting stability when it comes to the price of goods and services with more than half (58 per cent) anticipating constancy in their pricing, up by 13 per cent on the previous quarter.

Raj Kandola, acting deputy chief executive of Greater Birmingham Chambers of Commerce, said: “The results from our latest Q2 Quarterly Business Report underline the continued impact of domestic and international developments on the local business community. In particular, export activity has been quite clearly impacted by the USA's new tariff regime.