UK businesses cut jobs at fastest pace in four years over summer, Bank of England finds | Bank of England

According to a Bank of Engil questionnaire emphasizing the impact of tax increases on employers, the UK businesses cut things at the fastest speed in four years during the summer.

. monthly instant image The Chief Finance Officers’ survey, one of the British enterprises of all sizes, showed that companies were reduced by 0.5% annually in August in three months, the largest decline since 2021.

With a significant decrease from the previous month, companies have also expressed a sharp decrease in their employment intentions for the next year. Work growth expectations weakened by 0.3 percent.

Luckily Rachel Reeves, public finances in public finances to meet a deficiency of more tax increase may be necessary, due to speculation, Rachel Reeves’in in late November, the labor economic administration was under pressure.

Business leaders Reeves, the employer’s national insurance contributions (NICS) to increase £ 25 billion from April this year, the first autumn budget measures forced them to reduce and increase prices.

Almost half of the 2,130 companies participating in the survey by the Bank said that they cut the number of employees as a result of change.

The monthly decision -making panel research, which is closely monitored by the interest rate determinants of Threadneedle Street, reported that 66% of companies have reduced profit margins as a result of change. 34% increased prices, 20% otherwise they paid lower wages than they did, he said.

However, the Bank reported that fewer firms have declared price increases, lower employment or lower wages in response to employer NICs, and after they waited until January before the changes are applied.

Economists, falling employment levels, at the next policy meeting on September 18 will not reduce interest rates, a risk that the bank will take into account, he said. Financial markets predict that the Bank will change its borrowing costs by 4%.

“Stubborn wage and price prints should keep MPC [monetary policy committee] Careful, but falling employment is a risk of a building. ”

On Wednesday, Reeves acknowledged that he did not work well enough for working people, because he announced the history of the second budget of the British economy for November 26th.

The date after the usual date will lead to speculation for weeks on how the treasury will generate additional income-but the chancellor hopes to use time to make new growth reforms.