Latest news with #JobsTax
Scottish Sun
21-05-2025
- Business
- Scottish Sun
Pub & restaurant bosses slam Rachel Reeves' tax hikes for sending inflation rate soaring by more than expected
PUBS and restaurant bosses angrily hit out at the higher-than-expected inflation figures - blasting a slew of government taxes and regulation for higher prices for consumers. Hospitality chiefs aimed their fire at decisions to raise national insurance costs for firms and called for lower business rates for the suffering sector. 1 Pubs and restaurant bosses angrily hit out at Rachel Reeves today Credit: PA The call came as inflation shot up to 3.5 per cent in the year to April which was a steep rise on the month before when it stood at 2.6 per cent. Kate Nicholls, UK Hospitality boss also hit out at a new packaging tax, known as the "bevvy levy" for also hitting consumers in the pocket. She said: "Political and tax decisions have consequences for consumer prices - we need downward pressure on regulation and costs of doing business with action on business rates, NICs, packaging and tourism taxes." Union boss Sharon Graham said the cost and living crisis is "alive and kicking". Read More Money News RATE SPIKE UK inflation rate soars by more than expected after millions hit with huge bills She added that growth and profit must turn into jobs and wages. Tory shadow Chancellor Mel Stride said that the news was "worrying for families" who are seeing prices spiral. Why does inflation matter? INFLATION is a measure of the cost of living. It looks at how much the price of goods, such as food or televisions, and services, such as haircuts or train tickets, has changed over time. Usually people measure inflation by comparing the cost of things today with how much they cost a year ago. The average increase in prices is known as the inflation rate. The government sets an inflation target of 2%. If inflation is too high or it moves around a lot, the Bank of England says it is hard for businesses to set the right prices and for people to plan their spending. High inflation rates also means people are having to spend more, while savings are likely to be eroded as the cost of goods is more than the interest we're earning. Low inflation, on the other hand, means lower prices and a greater likelihood of interest rates on savings beating the inflation rate. But if inflation is too low some people may put off spending because they expect prices to fall. And if everybody reduced their spending then companies could fail and people might lose their jobs. See our UK inflation guide and our Is low inflation good? guide for more information. He said: "This morning's news that inflation is up – and now well above the 2% target – is worrying for families. "We left Labour with inflation bang on target, but Labour's economic mismanagement is pushing up the cost of living for families - on top of the £3,500 hit to households from the Chancellor's damaging Jobs Tax. "Higher inflation could also mean interest rates stay higher for longer, hitting family finances hard. "Families are paying the price for the Labour Chancellor's choices.' Richard Tice, deputy Reform UK leader, said: "Terrible inflation numbers soaring to 3.5% Due to Labour's awful budget and economic mismanagement." Ms Reeves said: "I am disappointed with these figures because I know cost of living pressures are still weighing down on working people. "We are long way from the double digit inflation we saw under the previous administration, but I'm determined that we go further and faster to put more money in people's pockets. "That's why we have increased the minimum wage for millions of working people, frozen fuel duty to protect commuters and struck three trade deals in the past two weeks that will go towards cutting bills." What does it mean for my money? Rising inflation reduces people's spending power because things cost more. Core inflation, which excludes volatile items, also increased, driven mainly by higher household bills like energy and water. Businesses are passing on increased employment costs to consumers, contributing to inflation. Rising inflation means prices will rise faster, pushing up grocery and household bills. The Bank of England may keep interest rates higher for longer to control inflation, which could mean that mortgage rates will rise again. Rob Wood, at Pantheon Macroeconomics, said he believes inflation will stay around 3.5% for the rest of the year. He said: "We think the Monetary Policy Committee will have to proceed cautiously. "We stick with two more rate cuts this year, but are very close to reducing that to only one." However, this isn't guaranteed. If economic growth remains slow, the Bank could continue to lower interest rates to encourage spending and investment, helping to give the economy a much-needed boost. The base rate is currently set at 4.25%, and the Bank of England's Monetary Policy Committee will next review its level on June 19. Wage growth is slowing, and job insecurity is rising and this puts more pressure on personal budgets. While energy bills may fall in the summer, many households are still struggling. It's important to review budgets, cut wasteful spending, and manage debt. Homeowners and first-time buyers may be discouraged as interest rate cuts could slow down. Savers need to be aware that higher inflation reduces the value of their returns. It's important to secure good savings deals now and consider tax-efficient savings strategies like ISAs to protect savings from tax. Myron Jobson, senior personal finance analyst at interactive investor, said: "While the increase might come as a shock to households, it's important to remember that CPI inflation is an annual measure, comparing prices to what they were a year ago. "Britons should approach headline inflation figures with perspective. Everyone has an inflation rate that is unique to them, depending on their individual spending habits. "It's crucial to focus on maintaining financial resilience in uncertain times – whether by reviewing budgets, building up emergency savings, or managing debt – to better weather any bumps along the road ahead."
Business Mayor
13-05-2025
- Business
- Business Mayor
Quarter of employers planning to axe jobs as Rachel Reeves taxes hit
The Chancellor's tax updates were implemented last month (Image: GETTY) April saw Labour's increase on taxes for employers combined with global market uncertainty when President Donald Trump started dealing out tariffs. The perfect storm has drastically swayed hiring and firing decisions within businesses at large, a new survey has found. One in four employers plan to make redundancies in the next three months and the number of employers planning to hire more people this summer has dropped to a record low only surpassed by the pandemic. The retail sector could be especially affected. This is higher than the 21% recorded in Autumn. The Chartered Institute of Personnel and Development (CIPD) surveyed 2,000 businesses as part of its latest Labour Market Outlook report. The report also found 27% of employers had a redundancy programme in the last 12 months and half offered enhanced packages above and beyond what the law requires. Employers with less than 250 workers were far more likely to offer the statutory redundancy pay. Only one in 10 retail employers plan to increase staff levels over the summer while 30% expect a drop in staff numbers, reports the Express. Rachel Reeves' taxes were implemented as President Trump's tariffs came into play (Image: GETTY) In response to these staggering figures, the CIPD is urging the government to 'consult with employers and business bodies to limit the potential impact the Employment Rights Bill could have on employer's hiring plans as businesses face mounting external pressures'. James Cockett, senior labour market economist at the CIPD, said: 'It was always going to be a huge change for employers but they're operating in an even more complex world now. 'It's vital the government works closely with employers to balance the very real risk of reductions in investment in people, training and technology with their desire to reduce poor employment practice.' Andrew Griffith MP, Shadow Secretary of State for Business and Trade, said: 'Alongside making families £3,500 worse off, Labour's Jobs Tax is crushing confidence, killing jobs, and pushing employers to the brink. Under Labour, the economy has flatlined and with businesses under mounting pressure, things can only get worse. 'This report only confirms what we hear daily from the shop floor to the boardroom: confidence has collapsed. Labour can't understand why, because their cabinet has zero business experience.' One in four employers plan to make redundancies before the year is up (Image: GETTY) A Treasury spokesman told the outlet: 'In a period of global uncertainty this government is delivering stability for business. Trade deals with India and the US show the benefits of our cool-headed diplomacy. 'We have provided business rates relief, capped corporation tax, and are protecting the smallest businesses from the employer National Insurance increases. And we've now seen four interest rate cuts since July, making it cheaper for businesses to borrow.'
Daily Mirror
12-05-2025
- Business
- Daily Mirror
1 in 4 employers plan job cuts as Rachel Reeves taxes hit
A perfect storm for businesses has tanked the number of companies planning to hire more people April saw Labour's increase on taxes for employers combined with global market uncertainty when President Donald Trump started dealing out tariffs. The perfect storm has drastically swayed hiring and firing decisions within businesses at large, a new survey has found. One in four employers plan to make redundancies in the next three months and the number of employers planning to hire more people this summer has dropped to a record low only surpassed by the pandemic. The retail sector could be especially affected. This is higher than the 21% recorded in Autumn. The Chartered Institute of Personnel and Development (CIPD) surveyed 2,000 businesses as part of its latest Labour Market Outlook report. The report also found 27% of employers had a redundancy programme in the last 12 months and half offered enhanced packages above and beyond what the law requires. Employers with less than 250 workers were far more likely to offer the statutory redundancy pay. Only one in 10 retail employers plan to increase staff levels over the summer while 30% expect a drop in staff numbers, reports the Express. In response to these staggering figures, the CIPD is urging the government to 'consult with employers and business bodies to limit the potential impact the Employment Rights Bill could have on employer's hiring plans as businesses face mounting external pressures'. James Cockett, senior labour market economist at the CIPD, said: 'It was always going to be a huge change for employers but they're operating in an even more complex world now. 'It's vital the government works closely with employers to balance the very real risk of reductions in investment in people, training and technology with their desire to reduce poor employment practice.' Andrew Griffith MP, Shadow Secretary of State for Business and Trade, said: "Alongside making families £3,500 worse off, Labour's Jobs Tax is crushing confidence, killing jobs, and pushing employers to the brink. Under Labour, the economy has flatlined and with businesses under mounting pressure, things can only get worse. "This report only confirms what we hear daily from the shop floor to the boardroom: confidence has collapsed. Labour can't understand why, because their cabinet has zero business experience.' A Treasury spokesman told the outlet: 'In a period of global uncertainty this government is delivering stability for business. Trade deals with India and the US show the benefits of our cool-headed diplomacy. 'We have provided business rates relief, capped corporation tax, and are protecting the smallest businesses from the employer National Insurance increases. And we've now seen four interest rate cuts since July, making it cheaper for businesses to borrow.'
The Sun
24-04-2025
- Business
- The Sun
Keir Starmer is about to give away our border controls under the pretence of a trade deal
KEIR Starmer promised change. And we have it: change for the worse. Growth has tanked. Businesses are being hammered by the Jobs Tax. 3 3 3 And just as illegal migration hits record highs, Labour is negotiating a new 'Youth Mobility' scheme with the EU. When Labour negotiates, Britain loses. Their idea of negotiating is surrender first, explain later. Let's call this deal it what it is: backdoor free movement. Starmer always backed open borders. He opposed Brexit. He called immigration laws racist. And now, under the pretence of a trade deal, he's about to give away our border controls. This won't help business. You don't fix a broken economy by importing cheap labour. You fix it by backing British workers and creating real growth. Starmer risks bringing in young, unskilled migrants to compete with British workers, at the same time that businesses have stopped hiring because of Labour's Jobs Tax. And you certainly don't do migration deals while the small boats crisis rages on. This could create yet another loophole for criminal gangs to exploit. Labour promised no return to free movement. Just like they promised to cut taxes, protect pensions and get energy bills down. Make no mistake, it will be another Labour broken promise.
Yahoo
11-04-2025
- Business
- Yahoo
UK economy grew by 0.5% in February in boost to Rachel Reeves
The UK economy grew by 0.5 per cent in February in a boost to Labour following several months of almost flatlining, with the Office for National Statistics (ONS) pointing to 'widespread growth' across multiple sectors. In January, an unexpected 0.1 per cent decline was initially reported before the ONS revised up its estimates to a flat month, following just 0.1 per cent growth in the final quarter of 2024 - so February's change of gears will be welcome news to Rachel Reeves. Commenting on today's GDP figures for February, ONS director of economic statistics Liz McKeown said: 'The economy grew strongly in February with widespread growth across both services and manufacturing industries. 'Within services, computer programming, telecoms and car dealerships all had strong months, while in manufacturing, electronics and pharmaceuticals led the way and car manufacturing also picked up after its recent poor performance. 'Across the last three months as a whole, the economy also grew strongly with broad-based growth across services industries.' Speaking on the data, chancellor Rachel Reeves acknowledged that the positivity would be tinged with more immediate concerns over tariffs and potential trade wars, on the back of a wild week in the stock markets. 'These growth figures are an encouraging sign, but we are not complacent. We must keep going further and faster on our Plan for Change,' Ms Reeves said. 'The world has changed, and we have witnessed that change in recent weeks. I know this is an anxious time for families who are worried about the cost of living and British businesses who are worried about what this change means for them. This Government will remain pragmatic and cool-headed as we seek to secure the best deal with the United States that is in our national interest. At the same time we will be relentless in our work to kickstart economic growth, provide security for working people and renewal for Britain.' In response, the Conservative party played down the figures and pointed to perceived missteps from the Labour government previously. Mel Stride MP, shadow chancellor of the exchequer, said: 'Since coming to office, Labour's choices have killed growth stone dead and there is still a long way to go to recover. 'At the emergency budget, the forecasts for growth, inflation and borrowing all moved in the wrong direction because of Labour's decisions. Hardworking families deserve better than a Government crowing about sluggish growth whilst they will be £3,500 worse off because of the Jobs Tax.' While the rate of growth was definitely of a larger scale than some had anticipated, today's data does point to February - before increases in energy bills, rises in labour costs through National Insurance and minimum wage, plus the more recent and unexpected advent of uncertainty caused by the US president placing tariffs on nations around the globe. Even so, the spread of growth should provide optimism within the UK, say economists, with ONS pointing to estimated 0.6 per cent growth in the three months to February 2025, in large part due to services sector growth. 'The economy grew much faster than expected in February. Some of this probably represents standard monthly volatility, but the strength is reasonably broad, and the data should provide some reassurance that growth was holding up before tariffs, national insurance, national living wage and the Spring Statement impacted,' Luke Bartholomew, deputy chief economist, at aberdeen said. 'However, tariff developments and the swings in market sentiment will likely dominate any backward looking data in terms of shaping the outlook for the economy and policy.' Martin Sartorius, principal economist at the Confederation of British Industry (CBI), urged the government to continue seeking out ways to 'ease existing pressures' on businesses. Despite the overall positive impact of the growth figures, the backward-looking nature of them and what has since transpired with Donald Trump's tariffs means an interest rate cut is still expected next month, in order to stimulate further the UK economy. 'We continue to expect another rate cut from the Bank of England in May despite the somewhat growth given the likely disinflationary shock from global trade developments,' added aberdeen's Mr Bartholomew. 'Meanwhile, the volatility in gilt yields may further encourage an eventual shift in the fiscal rules, as the government tries to insulate from some of the externally-driven movement in financial conditions.' Suren Thiru, economics cirector at ICAEW, agreed on a likely rates cut and pointed out part of the larger than expected growth may continue into the next data set, due to firms bringing forward business while uncertainty reigned at the time. The latest UK inflation figures will be announced on 16 April, with the next Bank of England meeting to discuss potential interest rates cuts coming on 8 May. In the US, inflation fell by more than expected to 2.4 per cent in March, as the country prepares to deal with the impact of Donald Trump's back-and-forth tactics on tariffs.
