A quarter of UK employers plan to make redundancies before Budget tax increases bite in April, according to a survey that will reinforce fears of a sharp downturn in the jobs market. 

The poll by the Chartered Institute of Personnel and Development found that two-fifths of employers expected the increase in national insurance contributions announced in October’s Budget would increase their costs “to a large extent”, with many also set to be hit by the rising minimum wage and higher business rates.

Of the employers who responded, 25 per cent planned to make redundancies — the highest level since 2014, except during the pandemic — while 16 per cent expected their total staff level to decrease in the three months to March, up from 11 per cent in the previous quarter.