UK businesses cut jobs at the fastest pace for four years and reported the worst employment outlook since the pandemic, pointing to the continuing impact of chancellor Rachel Reeves’ decision to raise payroll taxes.
British companies cut employment by an annual rate of 0.5 per cent in the three months to August, the worst figure since 2021, according to a Bank of England survey of chief financial officers published on Thursday.
Last month, businesses also expected to cut employment by 0.5 per cent in the year ahead, the lowest reading since October 2020, when the economy was starting to recover from the hit of Covid-19 and some restrictions were still in place.
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