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Reeves’ Tax Hike hit one of the five job vacancies in small firms

Web Desk, 02/09/2025

Rahel reeves After new research, businesses are under renewed pressure to give up their tax growth, it has been suggested that it has the most impact on small firms.

Conclusions viewed by Independent It turned out that Number of job vacancies Small businesses declined by three months to fifth (18 percent) in July, compared to three months to October, when Chancellor declared Increase in the contribution of employers in national insurance in its 2024 autumn budget.

Analysis of the office for the National Statistics (ONS) data made by Liberal Democrats, as the party calls Chancellor to scrap it The so -called “jobs”, The Federation of Small Business (FSB) has come up with a dramatic warning that their members do not seem “the government’s back”.

No 10 denied that the reshuffle gave a blow to the Authority of Chancellor Rachel Reaves (Matthew Horwood/PA).

No 10 denied that the reshuffle gave a blow to the Authority of Chancellor Rachel Reaves (Matthew Horwood/PA). ,Packet,

The move paid for an increase in public spending to the MS Reves and around £ 25BN, which includes a large -scale £ 4BN promoted for NHS.

Analysis also comes that Ms. Rives is under pressure to fill the potential budget black hole of £ 40BN, warning with experts that she would have to break her election promise and increase income tax, VAT or employee national insurance.

Chancellor is also being urged to consider new money taxes by several labor and trade unions, bringing mansion tax and accusing the national insurance of landlords.

There is also speculation that a new job was given in Downing Street and the Care Stmper gave itself a new job in an economic advisor, baronic minushe shifik.

ALSO READ  Reeves warned against the tax-free pension lump sum cut as she searches for billions in tax

However, critics have argued that Chancellors had already gone back to an election promise to not increase national insurance and this step has been a counter producer in its top mission of economic development.

Recently published by ONS shows that in July for three months, small businesses posted 216,000 job vacancies to employ one to 49 people.

The figure is below 262,000 vacancies recorded till October 2024 in three months, a decline of 46,000 was revealed after the last autumn budget, which introduced the employer national insurance growth.

Medium -sized businesses that employ 50 to 249 workers saw a 13 percent decline, with vacancies to 16,000 during the same period.

Large businesses employing at least 250 people saw a decline of 10 percent, resulting in 43,000 less vacancies. Overall, the vacancies of jobs in all businesses decreased from 105,000, from three months to 823,000 in October 2024, from three months to 718,000 from July 2025.

Lib Dame Sara Olney is important for the so -called 'Jobs Tax' (James Manning/PA)

Lib Dame Sara Olney is important for the so -called ‘Jobs Tax’ (James Manning/PA) ,Packet,

Federation of Small Business (FSB) policy chairman Tina McKenzie said: “Small businesses do not think that the government comes to make jobs.

“This is not just the cost: if you threaten small businesses with the court, the other they rent someone, this is an estimated result.

“Any person working in the real economy can feel that the jobs have turned into a market, so we are calling ministers to take immediate action and more and more people can fix their dirt of an employment bill before getting out of work.

The CBI said at the time of autumn budget that the decision will fall into use with less businesses on a new recruitment.

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Next to this year’s budget, Lib Dames is calling Chancellor to scrap the tax of jobs that have pushed many small businesses to the brink and have left people to work without opportunities.

Lib Dame Business spokesperson Sarah Olni said: “The government’s jobs are nothing, but there is nothing but an unknown disaster. Countless small businesses were already on the verge of collapse and this development-cruel tax increase has only added pain.

“This tax growth has worked as a road to break with years of conservative mismanagement, which is stuck in mud to our economy. It is a high time that the Chancellor realizes that this tax growth is self-prostration, people refuse opportunities to reduce life and risk and to send more businesses to the wall.”

However, a spokesperson of the Treasury said: “Last year we have the tax decisions made in the budget mean that we are capable of distributing the priorities of the British people, from investing in NHS to cutting the waiting lists and raising wages for millions of people, to put more money in their pockets, as we distribute on the plan for change.”

He said that 43 percent employer (865,000) no employer will do national insurance this year.

He said that more than half of the employers would not see any change or shortage in their national insurance bills as the employment allowance had increased from £ 5,000 to £ 10,500.

Uk firmshikehitJobReevessmalltaxvacancies

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