Rachel Reeves' Tax Raid Linked to 178,000 UK Job Losses, 4.7% Unemployment

Chancellor Rachel Reeves' recent £20 billion employer national insurance tax increase has significantly impacted the UK labor market, resulting in thousands of job losses and a rise in unemployment to 4.7%, the highest in four years. Official data from the Office for National Statistics shows a drop of around 41,000 employees on payrolls in June and a total loss of 178,000 jobs over the past year, with vacancies decreasing for the 36th consecutive quarter. This tax policy has also contributed to a slowdown in wage growth to 5%, which remains above inflation but signals cooling labor market pressures. The British Horseracing Authority warns that proposed tax hikes merging horseracing and virtual gaming at higher rates could devastate the industry, which supports 85,000 jobs and generates over £4 billion annually. Economic experts and industry leaders express concern that the tax increases and ongoing employment rights legislation may further suppress hiring and economic growth. Bank of England Governor Andrew Bailey has cautioned that a weakening labor market may push policymakers toward deeper interest rate cuts to mitigate economic fallout.