UK companies axed workers faster than at any point since the pandemic started, with private-sector jobs dropping 1.8% as Rachel Reeves kept everyone guessing about tax hikes for months before her second budget. Bank of England numbers show bosses are planning to cut another 0.7% of their workforce over the next year, and payroll employment tanked by 180,000 people compared to the previous year.
The chaos basically froze hiring decisions after Reeves floated a £26 billion tax package that had businesses spiraling. She teased breaking Labour's campaign promise on income tax hikes before backing off when her own party freaked out. Her first budget already hit employers with a £25 billion payroll tax that made everyone slam the brakes on recruitment.
Wage growth is still sitting at 4.6% though, and companies expect to keep raising prices by 3.5% even as the economy slows down. Most people think the Bank of England will cut interest rates again to help cushion the damage from all the pre-budget mess that scared employers into contraction mode.
The chaos basically froze hiring decisions after Reeves floated a £26 billion tax package that had businesses spiraling. She teased breaking Labour's campaign promise on income tax hikes before backing off when her own party freaked out. Her first budget already hit employers with a £25 billion payroll tax that made everyone slam the brakes on recruitment.
Wage growth is still sitting at 4.6% though, and companies expect to keep raising prices by 3.5% even as the economy slows down. Most people think the Bank of England will cut interest rates again to help cushion the damage from all the pre-budget mess that scared employers into contraction mode.
