Derry-based McCambridge Duffy urges Northern Ireland businesses to prepare for post-Budget cost pressures

McCambridge Duffy, one of Northern Ireland’s leading insolvency and restructuring firms based in Derry, is urging business owners to prepare for significant cost pressures following the 2025 UK Budget. The rise in the National Living Wage, combined with ongoing Employer National Insurance obligations, is expected to deepen financial strain across key sectors, particularly hospitality, retail and care.

From April 2026, the National Living Wage for workers aged 21 and over will increase to £12.71 per hour. This represents a significant rise for labour intensive businesses that are already operating within tight financial margins.

Sectors such as hospitality, retail and care are particularly exposed because staffing costs make up a large proportion of their overall expenditure. Many of these businesses have been managing sustained increases in energy, supply chain and general operating costs, and the additional wage uplift will put further pressure on their ability to remain viable.

Northern Ireland businesses are especially exposed to these pressures. A sizeable number of hospitality and service based firms are already trading with little or no profit due to ongoing cost increases and reduced consumer spending. For many operators, wage costs can represent between 35 and 45 percent of total expenditure.

This means any statutory increase has a direct and immediate effect on cashflow and profitability, which can quickly translate into financial difficulty if not addressed early.

Employer National Insurance continues to add an extra layer of cost on every job created or retained. When paired with rising wages and pension obligations, many employers view these combined pressures as a significant barrier to maintaining staffing levels. For businesses that are already working with limited resources, the cumulative effect of these obligations can create serious challenges in sustaining day to day operations.

“While the intention behind raising statutory wages is understandable, the reality for many Northern Ireland businesses is very different. This Budget places already stretched employers under further pressure”, said Ronan Duffy, Insolvency Practitioner at McCambridge Duffy.

“For the companies we advise, the combination of wage increases, Employer National Insurance and fixed-cost inflation creates a serious risk. Many are already working on very limited margins. We expect to see more businesses entering financial difficulty, particularly in hospitality and retail.”

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Ronan adds that early action is often the determining factor in preventing insolvency.

“Our message is simple. Do not wait for the pressure to become overwhelming. Honest cashflow reviews, proactive talks with creditors and timely professional advice can be the difference between a temporary issue and a permanent loss of the business.”