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Britons may need to prepare for less jobs or higher prices Again the following year, after a new survey of business owners suggested that almost half of them (49 percent) would consider moving if employment costs were increased again. Budget,
Most companies have been hit at least once this year, and many of them from multiple angles, by changes to rules on the minimum wage, National Insurance contributions, packaging costs, the end of business rates relief for some industries and the prospect of reduced overseas sales due to tariffs.
Those cost pressures, along with widespread uncertainty over what’s to come in this month’s budget, have kept some companies from hiring additional staff, even as interest rates have gradually declined over the year.
Now research by Employment Hero and a survey of 1,000 business leaders by One Poll shows that both pricing and employment plans are in the firing line if Rachel Reeves And gives disappointment.
Along with 49 percent of people considering an increase, a third (33 percent) also said they would delay hiring further if the cost of employing people rises again. Almost one in four (24 per cent) also said they would consider making redundancies from existing roles.
More than half (59 percent) of business owners suggested they did not think budget decisions considered the needs of small businesses, while 86 percent said they were “concerned” about what the budget would mean for the company in the long term.
The British Chambers of Commerce (BCC) has repeatedly warned the government against further increases in business taxes, saying companies cannot continue to shoulder more of the burden as the economy recovers.
While Ms. Reeves has cited the need for economic growth, experts have argued that her policies are stifling it.
Rising prices contribute to rising inflationWhich has been a major issue in Britain in the last few years. While the rate was a lower-than-expected 3.8 percent in September, it remains well above the 2 percent target and inflation could worsen the budget loss.
While the figures for potential price increases would be a matter of concern, other data may point to limited impact in what actually happens.
Business insurance provider Simply Business released a report Monday showing that fewer small companies planned to raise prices in the spring than those that actually did — less than half, while 74 percent planned to do so.
However, this means that absorbing additional costs means profitability is reduced, putting further pressure on those who normally provide jobs.
“The Chancellor has an opportunity to address these challenges by reducing the cost of doing business and providing a platform for growth. Small business owners are calling on the Government to reduce corporation tax for small profits (15 per cent), reverse or reduce the employer NI increase (14 per cent) and provide more help for energy bills (14 per cent),” said Julie Fisher, UK CEO of Simply Business.
Kevin Fitzgerald, UK managing director at Employment Hero, said: “When you tax small businesses, you tax everyone. It creates a domino effect – higher costs lead to higher prices, fewer jobs and less money in people’s pockets. Small businesses employ the majority of our workforce. Make life harder for them, and you make it harder for Britain to grow.
“The autumn budget is an opportunity to learn from past mistakes.”