The proportions of Scottish businesses having already adjusted their operations in response to the hike in employers’ national insurance contributions and contemplating future action on this front are striking.

They have been revealed in the latest Scottish business monitor from the University of Strathclyde’s Fraser of Allander Institute, which was published yesterday.

This shows more than 60% of Scottish businesses have adjusted their operations because of the rise in employers’ national insurance.

Detailing the nature of these adjustments, Fraser of Allander observed that “many” businesses were “adapting to this through a combination of strategies: cutting back on hiring or cancelling increases in their workforce, adding the extra costs on to prices, and reducing employee benefits and compensation packages”.

These are grim effects, particularly those actions relating to staff and potential employees.

And, when Chancellor Rachel Reeves hiked employers’ national insurance contributions in the incoming Labour Government’s first Budget on October 30 last year with the aim of raising £25 billion a year, you would imagine this was not the response for which she was hoping.

What is more, the huge reaction that has been seen so far from businesses looks to be far from the end of the matter.

Fraser of Allander’s survey of more than 300 businesses - for the second quarter - found nearly 40% expect to make more adjustments down the road in response to the rise in employers’ national........

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