LONDON () – British businesses expect to raise prices and reduce headcount in response to an increase in employers’ social security contributions that will take effect in April, a Bank of England survey showed on Thursday.

The Bank of England’s Decision Maker Panel – a survey of more than 2,000 firms – showed 61% expected to make lower profits, 54% planned to raise prices, 53% expected lower employment and 39% intended to scale back pay rises due to the rise in National Insurance Contributions announced in Oct. 30’s budget.

Businesses plan to raise pay by 4.0% over the coming year and to increase prices by 3.8%, 0.1 percentage points more than in the November survey, the BoE said.