Analysis: What does Labour’s first Budget mean for insurance brokers?
In the time since Labour won the election on 4 July there has been much speculation as to what their first Budget would contain. PKF Littlejohn’s Tom Golding looks at some of the key changes announced - and what these may mean for insurance brokers.
Employer’s National Insurance Contributions (NIC)Some of of the most significant changes were those made to employer’s NIC, the tax payable by employers on employees’ earnings.
From 6 April 2026, the rate will increase from 13.8% to 15%. In addition, the point at which employers start paying tax will be reduced from £9,100 to £5,000 per annum.
From this date, any earnings an employee makes over the £5,000 will be subject to the increased 15% rate of tax.
The rate increase, coupled with the
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@insuranceage.co.uk or view our subscription options here: https://subscriptions.insuranceage.co.uk/subscribe
You are currently unable to print this content. Please contact info@insuranceage.co.uk to find out more.
You are currently unable to copy this content. Please contact info@insuranceage.co.uk to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@insuranceage.co.uk
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@insuranceage.co.uk
More on Broker
Further rise in member funds at Biba
The British Insurance Brokers’ Association grew member funds to £6.57m at the end of 2024, a 14% rise that built on increases of 13% and 21% in the previous two years.
People Moves: 7 – 11 July 2025
Stay in the loop with the latest insurance personnel moves.
PIB ends sales talks and reveals £400m debt raise
PIB Group has confirmed the end of “recent acquisition conversations”, drawing a line under the sales process with the comment that it is “appreciative of the attention it has received in the market”.
Premium Credit open for business after Close Brothers broker and personal lines cuts
Premium Credit has confirmed it is “there to support any distribution partners”, following competitor Close Brothers pulling back on personal lines premium finance lending and exiting up to 120 broker relationships.
Alan Boswell crowned Broker of the Year at 2025 BIAs
Alan Boswell Group won Broker of the Year at the 2025 British Insurance Awards last night (9 July).
JMG strikes 50th deal
JMG Group has completed its 50th acquisition since its 2020 management buyout, snapping up London-based Profile Insurance Services.
Close Brothers to cut broker relationships in personal lines pull back
Close Brothers has confirmed it will exit some broker relationships over the next year as it pivots away from personal lines premium finance to focus on commercial business.
Insurance Age scoops two Biba Journalist and Media Awards
Insurance Age was crowned twice at the 2025 British Insurance Brokers’ Association Journalist and Media Awards held at Lloyd’s yesterday.