Businesses have put hiring on hold as Labour faces accusations of economic doom-mongering ahead of the Budget.
In a further sign that confidence among employers is ebbing away following the election, a report shows firms are ‘holding back from hiring’ new staff.
It also called for ministers to present ‘a vision for a positive, prosperous Britain’ amid mounting fears Labour’s pessimism and plans for bumped up workers’ rights are harming the economy.
The report, published today by the Recruitment and Employment Confederation and KPMG, came as business leaders warned the prospect of a series of brutal tax hikes in the Budget next month was already pushing wealth creators out of the UK.
Fresh statistics from Henley & Partners, which helps wealthy investors move overseas, showed a net loss of 4,200 millionaires in the first five months of the year, with 5,300 expected to leave before January.
Businesses have put hiring on hold as Labour faces accusations of economic doom-mongering ahead of the Budget. Pictured: Chancellor of the Exchequer Rachel Reeves
The report, published today by the Recruitment and Employment Confederation and KPMG, came as business leaders warned the prospect of a series of brutal tax hikes in the Budget next month was already pushing wealth creators out of the UK. Pictured: The City of London skyline
Fresh statistics from Henley & Partners, which helps wealthy investors move overseas, showed a net loss of 4,200 millionaires in the first five months of the year, with 5,300 expected to leave before January. Pictured: Bank Station in the financial centre of London
Fears are mounting that Labour will hike National Insurance contributions paid by employers – a so-called jobs tax – as well as capital gains tax and inheritance tax. There is also talk of higher fuel duty and a raid on pension savings.
In comments that may add to the alarm among business leaders, the leader of Britain’s trade union movement will today hail Labour’s planned expansion of workers’ rights and say he is coming after ‘bad bosses’.
Trades Union Congress general secretary Paul Nowak will tell its annual conference in Brighton: ‘I want to put every anti-union, anti-worker boss on notice.
‘If you think you can get away with paying poverty wages, forcing people into work when they’re sick and firing and rehiring your staff – think again.’
Today’s report stated: ‘Recent Government warnings that the UK’s economy may weaken further before improving add to the overall sense of uncertainty, affecting recruitment plans.
‘Firms holding back from hiring led to a sharp contraction in the number of people placed into permanent roles in August’
Trades Union Congress general secretary Paul Nowak will tell its annual conference in Brighton: ‘I want to put every anti-union, anti-worker boss on notice’
Today’s report stated: ‘Recent Government warnings that the UK’s economy may weaken further before improving add to the overall sense of uncertainty, affecting recruitment plans (stock image)
Last night Shadow Business Secretary Kevin Hollinrake (pictured) told the Mail: ‘Rachel Reeves and Sir Keir Starmer seem to think that talking down Britain, hiking up taxes and bringing in a tidal wave of new business regulation will grow the economy’
An index tracking permanent placements fell to 44.6 in August, down from 47.7 in July.
A reading of less than 50 signals that hiring numbers have fallen.
The report also raised concerns about the government’s gloomy rhetoric.
‘The new government said growth was its main priority – but it needs to deliver now. A vision for a positive, prosperous Britain has to accompany the fiscal realism that is being served up right now,’ the report said.
Last night Shadow Business Secretary Kevin Hollinrake told the Mail: ‘Rachel Reeves and Sir Keir Starmer seem to think that talking down Britain, hiking up taxes and bringing in a tidal wave of new business regulation will grow the economy.
‘It comes as no surprise that businesses are heeding their gloomy warning, driving them away and putting at risk the growing and resilient economy they inherited.’