UK Firms Plan Largest Layoffs in Decade as Business Confidence Plummets

UK employers are preparing for the largest wave of job cuts in a decade due to plummeting business confidence, largely attributed to upcoming tax increases and a significant rise in National Insurance contributions. A survey from the Chartered Institute of Personnel and Development (CIPD) indicates that redundancy intentions have reached their highest level since before the pandemic, with about a third of employers planning to reduce staff. Inflation is expected to rise, and unemployment could increase as well, further complicating the economic landscape. The Federation of Small Businesses also reported a dramatic decline in confidence among small firms, particularly in the hospitality and retail sectors. Critics of the Labour government are calling for a change in economic strategy, as many firms consider scaling back expansion plans amid rising operational costs. Business Secretary Jonathan Reynolds has urged firms to remain patient, asserting that the current policies are aimed at long-term growth.