Friday, December 27, 2024

Two thirds of companies slash hiring plans after Reeves’s tax raid

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Ms Newton-Smith will say: “When firms I speak to want to be creating more opportunities, more investment, more training in their local communities…instead so many – especially in retail and hospitality – have gone into crisis containment.

“Even where the risk isn’t critical, firms that have been through really tough years are now in damage control again.

“Too many businesses are having to compromise on their plans for growth. We can’t let that stand and not act.

“What really defines growth is the decisions made in boardrooms up and down the country.

“It’s chief financial officers and chief executives asking: can we afford to invest? Can we afford to expand? Can we afford to take a chance on new people? Well after the Budget, the answer we’re hearing from so many firms is still – not yet.”

She will also point to the inheritance tax grab on farmers, warning that many are now fearful they may not be able to pass on their livelihoods to future generations.

Ms Newton Smith’s speech reflects growing anger over the Budget, with business lobby groups warning ministers on a private call last week that a £25bn increase in employer National Insurance contributions will drag on plans to tackle Britain’s worklessness crisis.

Businesses that rely on low-wage, part-time staff are particularly affected, as the threshold for paying National Insurance on workers’ earnings will fall from £9,100 to £5,000. This coincides with an increase in the minimum wage from next April and Angela Rayner’s sweeping workers’ rights overhaul, which is set to cost businesses £5bn a year.

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