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

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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.

Attwells staff outside their Ipswich office

An award-winning local law firm

Rated as "Excellent" on Review Solicitors with an impressive 4.8/5 on Feefo.

Attwells staff outside their Ipswich office

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Fashion, food and music: Ipswich students celebrate their heritage at Culture Day

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BBC Radio Suffolk DJ and broadcaster Angelle Joseph praised One Sixth Form College's celebration of cultural diversity, saying it gives students the chance to "celebrate who they are and where they are from."

Why it matters: The fifth annual Culture Day at One Sixth Form College (ONE) brought together students, staff and local organisations to champion equality and celebrate the diverse backgrounds within the Ipswich community.

BBC Radio Suffolk DJ and broadcaster Angelle Joseph with Ellisha Soanes, an Eastern Education Group consultant
BBC Radio Suffolk DJ and broadcaster Angelle Joseph with Ellisha Soanes, an Eastern Education Group consultantEastern Education Group

Students and staff took to the catwalk in a fashion show wearing outfits representing their heritage, with music provided by Angelle Joseph, who also hosts BBC Introducing in Suffolk.

"It's a chance to celebrate the diversity of the college," said Joseph, attending the event for the third time. "People have travelled from all over the world and now live in Ipswich. It's a day where everyone can feel really proud and celebrate who they are and where they are from."

The bigger picture: Local organisations including Aspire Black Matters, Ipswich Museum, Job Centre Plus, Karmartri, Outreach Youth and Volunteering Matters supported the celebration.

Activities included Chinese health practices, while food sold on campus offered a selection of dishes from around the globe.

Cass and Lexie from One Sixth Form College
Cass and Lexie from One Sixth Form College helped organise the Culture DayEastern Education Group

What they're saying: Lexie Jordan, 17, from Ipswich, who helped organise the event, said: "It's all about embracing everyone's different cultures, recognising where everyone is from and understanding what that means to each person."

For A-level student Cass Herrieven, 17, from Leiston, the day had personal significance: "It's important for me as I'm half Portuguese and I've not got much of a chance to connect with that side of me – so having somewhere that is celebrating me and everyone else is pretty special."

Nyasha Mangoma, 17, from Ipswich, who took to the fashion catwalk representing black Britain alongside her mother Sharon representing Zimbabwe, added: "I think it is important to celebrate everyone's cultures especially when we live in such a culturally diverse area of England."

Nyasha Mangoma was representing black Britain during the One Sixth Form College culture day
Nyasha Mangoma was representing black Britain during the One Sixth Form College culture dayEastern Education Group

For context: Ivya Scott, a University of East Anglia student representing Suffolk Windrush, displayed quilts people had made relating to their history. She said: "This event is important as people get to know the contributions that people in their community have made to Ipswich, Suffolk and Britain."

Jackie Ellis, representing The Hive and The Ipswich Museum, said: "I think this event is very important as there is a diversity of different communities (here at ONE) and when people learn from other cultures, it empowers them to interact better and understand one another."

Ivya, a student from the University of East Anglia
Ivya, a student from the University of East Anglia, came along to talk about the Windrusg GenerationEastern Education Group

The bottom line: ONE Group Principal Jake Robson summarised the event's purpose: "This is our fifth annual Culture Day, a celebration of belonging. It brings our diverse community together, allowing everyone to embrace both their unique identities and shared experiences."

Attwells staff outside their Ipswich office

An award-winning local law firm

Rated as "Excellent" on Review Solicitors with an impressive 4.8/5 on Feefo.

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