Survey reveals drastic measures in response to National Insurance hike
A recent survey has unveiled that businesses are gearing up for a significant wave of job cuts - the most severe in a decade - to counterbalance the tax increases proposed by the Labour party. According to the Chartered Institute of Personnel and Development, one-third of employers are bracing to reduce their workforce through redundancies or halting new hires, while two in five are considering raising prices to cope with the financial strain.
Confidence tanks as Chancellor's £25 billion National Insurance hike looms
The Chartered Institute of Personnel and Development's analysis of over 2,000 firms highlighted a notable surge in intentions for redundancies following Chancellor Rachel Reeves' announcement of a £25 billion increase in employers' National Insurance contributions, set to take effect in April. The institute's Chief Executive, Peter Cheese, expressed concern over the significant decline in employer sentiment, marking it as the most substantial shift in over a decade.
Labour's growth mission jeopardized as businesses reel from impending changes
With a quarter of firms indicating they may need to abandon expansion plans, the survey underscores the mounting pressure on Labour's growth agenda. Despite the challenges, Business Secretary Jonathan Reynolds reassured the public, urging them to persevere, emphasizing that the current economic landscape remains the optimal foundation for the UK's prosperity.
Business confidence hits record low outside of pandemic
The Federation of Small Businesses echoed the somber sentiment, revealing that confidence levels among firms plummeted to their lowest point on record outside of the pandemic during the fourth quarter of last year. The economic repercussions of the impending tax adjustments are evidently casting a shadow over business outlooks, with many bracing for turbulent times ahead.
