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Ipswich businesses face 'steep' National Insurance rise in new Budget

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Ipswich's only independent news website

We publish the stories that matter and champion everything that's good about our town – without the ads, popups or tracking

Local business leaders have warned that increased National Insurance contributions and minimum wage hikes could put pressure on Ipswich employers, following today's Budget announcement.

The big picture: Chancellor Rachel Reeves has delivered Labour's first Budget since 2010, introducing significant changes that will affect how Ipswich businesses operate from April.

Rachel Reeves with the Budget briefcase
Rachel Reeves has delivered Labour's first Budget since 2010Alamy

Why it matters: Local firms will see their National Insurance contributions rise, while also facing increased minimum wage costs.

  • Businesses will pay National Insurance on workers' earnings above £5,000 from April, down from £9,100 currently.

  • The rate will increase from 13.8% to 15%, raising an estimated £25bn a year nationally.

  • The minimum wage for over-21s will rise from £11.44 to £12.21 per hour.

"As a business owner, there are real concerns that the Government is unaware of the cumulative effect of minimum wage increases and the very steep NI increases," says Colin Low, managing director of Ipswich-based financial planners, Kingsfleet.

On changes to Business Relief limits: The Budget also introduces changes affecting family businesses planning for succession. Changes to Business Relief limits will mean family businesses passing to the next generation face a 20% tax after the first million.

Low describes this as "a significant additional expense for grieving families to have to find" while acknowledging that the changes "may sound quite reasonable" to many.

Yes, but: Some support for businesses was announced:

  • The employment allowance will increase from £5,000 to £10,500, helping firms reduce their NI liability.

  • Corporation tax will remain at 25% until the next election for businesses with profits over £250,000.

The bottom line: While the Budget introduces measures to support some businesses, firms face increased costs through higher National Insurance contributions and wage bills.

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500 mobile phones donated to support domestic abuse victims in East Anglia

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Ipswich.co.uk Logomark in a circle

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We publish the stories that matter and champion everything that's good about our town – without the ads, popups or tracking

Virgin Media O2 Business has donated over 500 mobile phones to help survivors of domestic abuse and sexual assault across East Anglia, including Suffolk.

Why it matters: The donated devices will enable vulnerable people to contact support services, emergency services and family members when their own phones have been broken or confiscated by perpetrators.

The phones will be distributed to Leeway, Catch-22, and Mountain Healthcare support services across five counties – Bedfordshire, Cambridgeshire, Hertfordshire, Norfolk and Suffolk.

Some devices will come with free SIM cards and mobile data from the National Databank, which was founded by Virgin Media O2 and the digital inclusion charity Good Things Foundation. The National Databank is described as "like a food bank but for free data, texts and calls, helping to connect people in need."

Leeway

Leeway provides support to adults and young people looking to break free from domestic abuse in Suffolk and Norfolk.

The background: The donation comes as part of Virgin Media O2 Business's social value commitment through a recent police contract with 7F Commercial Services.

7F Commercial Services uses collaborative buying power for seven police forces in the eastern region, including Bedfordshire, Cambridgeshire, Hertfordshire, Norfolk, Suffolk, Essex, and Kent, to obtain better value for money from their contracts.

What they're saying: Suffolk's Police and Crime Commissioner, Tim Passmore, said: "Supporting victims is a key responsibility for me as Police and Crime Commissioner. We commission many services to support victims to help them cope with the immediate impact of crime, and, as far as possible, recover from the effects.

Tim Passmore, Police & Crime Commissioner for Suffolk
PCC

"I absolutely support this 'social benefits' approach. Funding is always tight and anything we can do to work with the commercial sector to access additional funding to support this work gets my full support.

"I know from speaking to victims just how devastating it is to be denied something as basic as the ability to talk to family and friends. I hope these phones provide a useful lifeline for victims of domestic abuse and sexual assault to feel more secure and less isolated."

Charlotte Hails, Head of Public Sector Vertical Strategy at Virgin Media O2 Business, said: "As a former senior police officer who specialised in Safeguarding and Public Protection, I know first-hand that mobile phones and connectivity are critical to ensuring victims and survivors are not isolated and can receive support.

"By partnering with local organisations in East Anglia, Virgin Media O2 Business is helping ensure victims and survivors receive the smartphones and data they need. This builds on our commitment to support police forces and communities across the UK to improve public safety and reduce crime."

The bottom line: The initiative aims to reduce isolation among victims of domestic abuse and sexual assault by providing them with secure means of communication through donated mobile devices.

Oliver Rouane-Williams speaking with an elderly couple in the town centre

We can't do this without you!

If you value strong, free, independent local media that fights tirelessly for our town, please consider contributing just £24 per year

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