Rachel Reeves has been given a new blow to the economy as the company falls on the “record low” plan to rent. National Insurance Contribution (NIC) growth.
Personnel and Development Institute (CIPD) said that only 57 percent of private sector employers plan to recruit employees in the next three months, which are below 65 percent in the last autumn, as they fight the rising cost.
The influential monthly report by Accountant KPMG and Recruitment and Employment Federation (REC) also showed “further decline” in permanent worker appointments last month, in which the recruiters blamed the weak confidence in the economy and High payroll cost.
Anna Leach, Chief Economist The Institute of Directors, warning the trend, “may further reduce the UK’s weak development approach, kill both the standard of living and both. Tax revenue,
The CIPD survey of 2000 employers found that 84 percent of the UK businesses stated that their employment costs increased after a change in NICS in April 2025, while half -care and hospitality employers said that those costs had increased to a great extent.
Ben Casswell, Senior Economist of Leading Think Tank National Economic and Social Research Institute (NIESR)Said that the findings show that the firms are working with Ni Hike by cutting the employees instead of increasing the prices, but warned that they are now being operated upwards. ChancellorThe increase in minimum wages, which came in April.
This news will come as a shock for Ms. Reeves a day later Bank of England warned the people of high prices to be inspired by high food costs.
Central Bank also convicted Ms. Reeve’s raids And increase in minimum wages To help pursue the cost of the supermarket shop, because it dropped the interest rates in a bid to promote the UK’s dull economy.
Ms. Reeves has also been Warning of £ 50bn black hole in government financeThe major economists say that they may have to increase taxes, cut public spending, or to tear its fiscal rules to fill.
On Sunday, he urged the public Patient with labor on economySaying that the change for which he had voted for the last summer election was “never going to happen overnight”.
James Cocktate, an economist at CIPD’s Senior Labor Market, said the trust of the trade was “fighting further under the rising employment cost” and warned that the situation could worsen.
“Further, some measures in the employment rights bills carry forward the cost of providing employment to the people. That is why it is important that planned measures, such as the introduction of a new statutory probationary period and the procedure to dismiss new employees, is carefully consulted so that they can ensure that they can work in practice.”
John Holt, Chief Executive Officer of the group and senior UK partner at KPMG, said: “Labor market cooled down in July as the main execution held its recruitment budget back. Economic uncertainty, AI adoption and global headwind complications are all weight on business planning.”
Last month, East-Manchester United footballer Gary Neville, who was one Worker’s vocal previous In the last general election and Sir Kir appeared in a video supporting the stormer, Reeves For him National insurance growthSaying that it has hindered employment.
Mr. Neville, a businessman whose firms employed hundreds of people, said Chancellor had increased the burden significantly On businesses and that National Insurance The growth was “a challenge”.
Lib Dame Treasury spokesman Daisy Cooper said that the tax of the government’s jobs was “completely misguided”.
He said, “This is a complete hammer shock for businesses across the country, especially for important people-intensive areas such as social care and hospitality, many are forced to cut costs and prevent recruitment,” he said.
A spokesman for HM Treasury said that 380,000 jobs had arisen since the introduction of this Parliament, while the actual wages increased in the first ten months to power compared to the first ten years of the previous government. He said that according to a recent survey by Lloyds Bank, business confidence was at the highest rate in ten years.
He said, “Since the election, we have killed three major trade deals with the European Union, America and India, professional rates are being improving, and the corporation tax has been covered at 25 percent. Similarly we are changing our plan for kickstart economic growth and putting more money in the working people’s pockets,” he said.
