Businesses are sacking staff at the fastest rate in four years in the wake of the chancellor's payroll tax hike, new data from the Bank of England has shown.
Employment fell 0.5% in the three months to August, according to the Bank of England research, representing the steepest decline since 2021.
The survey of 2,000 chief financial officers, The Times reports, also predicted the situation is set to deteriorate further with companies planning to cut more jobs over the coming 12 months at the fastest pace since October 2020.
It comes as economists predict Rachel Reeves could increase taxes further or slash spending by as much as £40billion in a bid to restore her fiscal headroom.
HMRC data shows payrolled employment has shrunk by over 160,000 since last year's October budget when Reeves announced a £25billion national insurance hike for businesses.
Redundancies which followed were concentrated in the retail and hospitality sectors in particular.
FTSE 100
The UK's flagship share index, the FTSE 100, was up 53 points at 9,224 shortly after opening this morning.
Brent crude oil futures were down 0.22% at $66.65 a barrel.
Companies reporting today
- Ashmore Group - Full Year Results
- Berkeley Group - Trading Statement