Latest news with #JobsTax
Scottish Sun
17 hours ago
- Business
- Scottish Sun
Bank of England keeps interest rates unchanged leaving home-buyers to wait for loan cuts
STAYING PUT Bank of England keeps interest rates unchanged leaving home-buyers to wait for loan cuts Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) HOME-buyers were made to wait for loan cuts as Bank chiefs held steady on interest rates. Borrowing costs were kept at 4.25 per cent yesterday as oil prices rise because of the Israel-Iran conflict and inflation remains stubbornly high. Sign up for Scottish Sun newsletter Sign up 1 The Bank of England has chosen to keep interest rates unchanged (pictured Andrew Bailey, Governor of the Bank of England) Credit: Reuters Businesses were also found to be increasingly reluctant to hire staff. Six members of the Bank of England Monetary Policy Committee voted to stick with the same rate, with the other three calling for a cut of 0.25 per cent. Bank Governor Andrew Bailey said: 'Interest rates remain on a gradual downward path, although we've left them on hold today. "The world is highly unpredictable.' Mr Bailey added: 'In the UK we are seeing signs of softening in the labour market. "We will be looking carefully at the extent to which those signs feed through to consumer price inflation.' The Tories last night said interest rates are staying higher for longer due to Labour's Jobs Tax and borrowing which is driving up inflation and killing growth. Shadow Chancellor Mel Stride: 'To plug the hole they have created, we now know Rachel Reeves has a secret plan to raise taxes. "Make no mistake – more taxes are coming." Chancellor Rachel Reeves told The Times CEO Summit that she wants the Bank to set the right policy for bringing down inflation to the 2 per cent target. She added that double-digit inflation seen a few years ago 'was so challenging for businesses, but also family finances, which also has a knock on impact on business'. What is the Bank of England base rate and how does it affect me? Unlock even more award-winning articles as The Sun launches brand new membership programme - Sun Club.
The Sun
10-06-2025
- Business
- The Sun
Jobs tax has done serious damage – Rachel Reeves MUST reverse some of it in today's Spending Review
Taking the rise THE verdict is in on the Jobs Tax — and it's not good news. In the first set of figures since the £25billion National Insurance whammy on employers kicked in, unemployment now stands at 4.6 per cent. 1 Estimates for last month show 109,000 workers wiped from company pay-rolls — the biggest monthly drop since Covid. Vacancies are also at their lowest since the pandemic. The ONS bleakly warns: 'Some firms may be holding back from recruiting new workers or replacing people when they move on.' Reality has now bitten, making Sir Keir Starmer 's claims of having fixed the economy look distinctly shaky. The NI tax rise was always going to be a massive brake on the economy. If you make it more expensive for employers to employ people they will have to stop doing it. Today's Spending Review is a chance for the Chancellor to reverse some of the damage. By unveiling some measures proving growth really is her number one priority. China crisis WHY are ministers being so complacent about the obvious threats posed by China's planned super embassy? Spooks and MPs are worried about a nest of hostile spies being built in London — close to three major data centres linked by cables carrying highly sensitive financial information. The US also has grave doubts about the wisdom of handing Beijing such a golden chance to cause havoc in a close ally's capital. Its chief concern is the Chinese getting hold of secret shared information. Given that China already runs secret police stations targeting dissidents in Britain, such fears are justified. Could the reason for ministers being so relaxed is that it's already a done deal in return for the paltry £600million trade agreement signed in January? If so, is that really worth such an enormous risk to national security? Zero faith TAXED to the hilt, worried about losing their jobs and struggling to pay soaring bills, it's no wonder that so many skint Brits are fed up with Net Zero. Forty per cent now feel actively worse off as a result of the dash to 2050, while just a fifth believe it has led to positive change. Politicians must understand the current harsh economic reality for so many hard-working families.
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.'
