Speculation surrounding potential increases to employer pension contributions in the forthcoming Budget has sent UK firms into turmoil, with some acknowledging it could threaten their financial survival.

Research from consultancy Barnett Waddingham reveals that almost 20 per cent of companies worry they could face insolvency if mandatory rises to employer pension contributions were implemented, as reported by City AM .

Firms have already been compelled to bear extra financial pressures following measures in Rachel Reeves' inaugural budget last year, with the national living wage rising to £12.21 from April 2025.

National insurance contribution rates also climbed from 13.8 per cent to 15 per cent.

More than 30 per cent of companies acknowledged they would halt recruitment entirely or

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