Blow for Reeves as company hiring plans ‘at record low’ in wake of national insurance hike
Rachel Reeves received a new blow to the economy because it fell to “record low” after the national insurance contributions of the company recruitment plans (NIC).
Chartered Personnel and Development Institute (CIPD), only 57 percent of private sector employers, last autumn 65 percent of the increase in the cost of increasing costs plans to buy staff, he said.
Accountants KPMG and recruitment and Employment Federation (ReC) by the effective monthly report, last month last month showed a “more steep decline” in permanent labor appointments, and recruitment officers accused the weak trust in the economy. higher payroll costs.
Anna Leach, Chief Economist The Institute of Management warned that “Britain can further weaken the weak growth appearance and reach both living standards and tax revenues”.
2000 Employer CIPD survey, 84 percent of the UK enterprises in April 2025 NIC changes since the entry into force of employment costs increased, maintenance and hospitality employers said that these costs have increased to a great extent.
Senior economist Ben Caswell in the leading thinker, the Institute of National Economic and Social Research (NIESR), the findings, raising the price of the companies by cutting the price of the hike, but the chances of the minimum wage increase in April, he warned.
The news will come to Mrs. Reeves as a blow to Mrs. Reeves only days after the Bank of England’s Bank warned for months of sharp price increases for months due to higher food costs.
The Central Bank also accused the increase in the minimum wage to help to increase the cost of Ms. Reeves’ raid and the supermarket shop for reduced interest rates to 4 percent to increase the sluggish economy of England.
Ms. Reeves, the government’s financing of 50 billion pounds of black hole was warned, which leads economists to raise taxes, reduce public expenditures or fill the financial rules may need to tear.
On Sunday, he called on the people to be patient to work on the economy, saying that the change they voted in the last summer elections was “never overnight”.
James Cockkett, a CIPD senior labor market economist, warned that business confidence is “worsened under increasing employment costs and that the situation could worse.
“When we look forward, some measures in the draft employment rights contribute more to the cost of employing people. Therefore, it is very important to consult carefully to ensure that planned measures such as a new legal trial period and the process of dismissing new staff can work in practice.”
KPMG Group General Manager and British Senior Partner Jon Holt said: “The labor market was cooled as chief executives who were kept away from increasing recruitment budgets in July. Economic uncertainty, AI adoption complexity and global winds are all focused on business planning.”
Last month, former Manchester United football player Gary Neville, who was a vocal supporter of the laboratory in the last general elections and approved Sir Keir Starmer Reeves, saying that it prevented employment for the national insurance hike.
Mr. Neville, a businessman who employs hundreds of people with companies, said that the chancellor significantly increased his burden on businesses and that the national insurance increase was “a difficulty”.
Lib Dem Treasury Spokesman Daisy Cooper said that the government’s job tax was “completely misled”.
Business businesses throughout the country, especially vital people such as social care and hospitality, were given an absolute hammer coup that forced many to reduce costs and pause recruitment, ”he said.
A HM Treasury spokesman said that 380,000 work has been created since the beginning of this parliament, while the first decade of labor, real wages have increased more than the first decade of the previous government. According to the Lloyds Bank research, they added that the occupational confidence was the highest rate in ten years.
“Since the election, we have made three major trade agreements with the EU, the United States and India, the work rates have been reorganized and corporate tax is limited to 25 percent. In order to start economic growth, we present our change plan in this way and put more money in the pockets of the employees.”
