Tax increases in the budget have made it harder for businesses to “take a chance” on hiring people, the head of the CBI says as the government prepares to announce big welfare reforms that aim to “get Britain working”.
Rain Newton-Smith will tell business leaders on Monday that measures announced by Rachel Reeves last month are undermining the government’s mission to get people back into jobs.
A CBI survey suggests that half of employers are looking to cut jobs since the £25 billion increase in their national insurance contributions was announced. The poll of 266 companies also suggests nearly two thirds are now reconsidering recruitment plans.
In a speech to be given to the CBI conference, Newton-Smith says that business will be key to getting