Companies cut jobs at the fastest pace in four years last month after the budget increased the cost of employing staff and hit confidence, a closely watched survey showed.
Excluding the pandemic, the rate of job losses was the fastest in more than 15 years, with nearly one in four firms shedding staff and implementing hiring freezes.
The S&P Global final composite purchasing managers’ index (PMI) for December inched down to 50.4 from 50.5 in the previous month, the lowest reading since October 2023 and slightly below analysts’ expectations. The figure was above the 50-point threshold that separates growth from contraction but downgraded from an earlier estimate.
Tax rises announced by Rachel Reeves, the chancellor, at the budget have led to a sharp reduction