A hike in National Insurance contributions from employers and an increase in the National Living Wage will have a “colossal” impact on environmental horticulture, according to surveys carried out by the Horticultural Trades Association

Its members are expecting to see profit drop by 21% next year as a result of the Autumn Budget. This amounts to a £134m loss to the sector, says the association.

Two-thirds of businesses are now looking to raise their prices in 2025. Many are also planning to postpone or reduce capital investments and considering a freeze on recruitment over the next few months.

The concerns were voiced through two recent surveys by the HTA – the Q3 2024 Business Barometer and the November 2024 Member Consultation Survey.

“When I first calculated the impact of the NI and minimum wage changes in the budget, I thought I had the decimal point in the wrong place. The scale of impact on profit is colossal. The impact of the National Insurance rises and the lowering of the threshold along with the minimum wage increase will have a huge impact on our business,” says one member.

From April next year, employers will need to contribute 15% to National Insurance on salaries above £5,000 – up from 13.8% on salaries of more than £9,100.

They will also see the minimum wage for 18-20-year-olds rise to £10 from £8.60, and the rate for over-21s rise to £12.21 per hour, from £11.44.

The HTA is urging parliament to delay the rollout of its Autumn Budget to allow time of its impact to be reviewed.