The UK Chancellor, Rachel Reeves, is considering increasing employer national insurance contributions (NICs) in the upcoming budget, potentially affecting businesses and their financial strategies. National insurance is a tax on earned income, paid by both employees and employers, but not on dividends or pensions. Employers currently pay 13.8% on earnings above £9,100, but proposed changes could extend this to pension contributions, potentially raising £17bn annually for the Treasury. While employee NICs remain unchanged, businesses might offset increased costs by reducing pension contributions or slowing wage growth, impacting workers indirectly. The Labour party's manifesto pledge not to raise taxes on working people is under scrutiny, as this change could be seen as a breach. Business groups warn of increased operational costs, possibly leading to job cuts or higher consumer prices, exacerbating inflation.