London, 10th November 2025: As the UK Government prepares for the upcoming Autumn Budget, global employment authority Employment Hero has urged them to steer clear of increasing the cost of employment. This call comes as the company’s latest research reveals that 1 in 2 (49%) small business leaders would consider raising prices if employment costs were to rise. The survey of 1,000 senior business leaders also showed that 86% of businesses are concerned about the potential impact of the Budget on their company, with 59% feeling that past Budget decisions have not taken into account the needs of small businesses.
The potential consequences of employment cost increases are concerning. Along with raising prices, a third (33%) of businesses would delay hiring, while almost a quarter (24%) would consider making redundancies. These actions could lead to further inflationary pressure on the economy and hinder the Government’s efforts to drive economic growth and control inflation.
Employment Hero’s real-time data shows that the UK labour market is showing signs of recovery, with a 2.3% rise in employment in October compared to September. This trend indicates that small and medium-sized businesses (SMEs) are remaining resilient despite the uncertain economic climate.
The impact of the October 2024 Budget is still fresh in the minds of business leaders, with 72% reporting that it had an impact on their company. This was reflected in Employment Hero’s platform data, which shows a u-shaped curve in employment rates over the past 12 months. The data shows a sharp dip following the Budget, with employment falling by -0.9% in December 2024, before slowly recovering in February. Although there has been steady growth since then, the current year-on-year growth remains below pre-April 2025 levels when the Budget reforms were implemented.
Kevin Fitzgerald, UK Managing Director at Employment Hero, said: “Taxing small businesses ultimately affects everyone. It creates a domino effect that leads to higher prices, fewer jobs, and less money in people’s pockets. Small businesses employ the majority of our workforce, and making their lives harder means making it harder for Britain to grow.”
“The Autumn Budget is an opportunity to learn from past mistakes. Our data clearly shows the impact that employment taxes had on small businesses last year. Despite these challenges, they remain resilient as ever – with October seeing a 2.3% growth in employment. If the Government wants to continue this trend and control inflation, they cannot keep penalising the very businesses that power our economy. We simply cannot afford a repeat performance. The way to get Britain working again is to support small businesses, not burden them.”
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About the Employment Hero Monthly Jobs Report
The Monthly Employment Hero Jobs Report is powered by data directly drawn from the Employment Hero platform, reflecting the SME labour market of the UK’s resident population aged 16 years and over, from close to 5,000 businesses and 105,000 employees.
About the Business Leader survey
Employment Hero commissioned leading research provider One Poll to survey 1,000 business owners and senior leaders in small-medium sized businesses (employees 5-499). The survey was conducted as a one-off study between 16th-28th October to understand perspectives ahead of the November 2025 Budget announcement.
About Employment Hero
Employment Hero is the global authority on employment, offering a world-leading Employment Operating System (eOS) that simplifies and optimises every stage of the employment process. Its award-winning platform combines HR, payroll, recruitment, and employee engagement tools with the groundbreaking employment superapp, EH Work, which integrates career management and financial wellbeing.
Serving over 350,000 businesses and managing more than 2.5 million employees worldwide, Employment Hero reduces administrative burdens by up to 80%, enabling organisations to focus on their goals and create more productive, engaged teams. By revolutionising the employment marketplace, Employment Hero is making employment easier, more valuable, and rewarding for everyone.
