Mon, 17 Feb 2025

Mon, 17 Feb 2025 Firms plan job cuts as employment costs rise

Companies' confidence falls as they face increases to National Insurance payments and wages

* 34% of UK companies plan to reduce their headcount through redundancies or by recruiting fewer workers.
* 42% of businesses will raise their prices to cover increasing employment costs.
* 25% of firms will cancel or scale down plans for investing in or expanding their business.
* Confidence among small firms hit its lowest point for 10 years, not including the Covid pandemic.
* The Treasury claims that the rises to National Insurance Contributions and the National Minimum Wage are necessary to fund public services and fix a "black hole" in public spending plans.
* The Bank of England expects inflation to spike at 3.7% later this year and take longer to fall back to its 2% target.
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