Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

UK firms plan biggest layoffs in a decade as business confidence collapses

by February 17, 2025
February 17, 2025
UK firms plan biggest layoffs in a decade as business confidence collapses

UK employers are bracing for the largest wave of redundancies in a decade, as confidence among businesses plummets amid concerns over rising costs and tax hikes set to take effect from April.

A new survey from the Chartered Institute of Personnel and Development (CIPD) has revealed that redundancy intentions are at their highest level in 10 years, excluding the exceptional period of the Covid-19 pandemic. The findings, based on a poll of 2,000 employers, indicate growing anxiety over increasing National Insurance contributions and the 6.7% rise in the national living wage—both key measures introduced by Chancellor Rachel Reeves in her autumn budget.

The news deals a fresh blow to the Labour government, which has faced mounting criticism over its handling of the economy. Official figures last week showed that Britain narrowly avoided a recession in the second half of 2024, but business leaders warn that rising costs could push the economy back into decline in 2025.

Adding to concerns, inflation is expected to rise to 2.8% in January, up from 2.5% in December, while unemployment is projected to increase to 4.5%, continuing a steady upward trend over the past year.

The Federation of Small Businesses (FSB) has also reported a dramatic collapse in sentiment, with confidence levels among small firms falling from -24.4 to -64.5. The hardest-hit industries include hospitality and retail, with businesses in the accommodation and food services sector reporting the lowest score at -111.0.

Tina McKenzie, policy chair of the FSB, said the upcoming employment rights bill—which is set to enhance worker protections from next year—is adding to business concerns.

“The fourth-quarter blues reported by small firms underline how urgently the government’s growth push is needed. Small firms are understandably nervous about their prospects as 2025 gets under way.”

The CIPD’s chief executive, Peter Cheese, warned that businesses are already making plans to cut jobs, raise prices, and reduce investment in workforce training as they adjust to higher employment costs.

“These are the most significant downward changes in employer sentiment we’ve seen in the last 10 years, outside the pandemic. Businesses have had time to digest these impending changes, with many now planning to reduce headcount,” he said.

The British Beer and Pub Association (BBPA) has also sounded the alarm, reporting that six pubs closed every week in 2024, resulting in 4,500 job losses. The BBPA warned that the October budget will add £650 million in costs to the sector, making it even harder for pubs to stay afloat.

“We’re right behind Labour’s mission to supercharge growth,” said Emma McClarkin, CEO of the BBPA, “but only if it is easier for pubs to keep their doors open.”

With business sentiment at its lowest in a decade, rising taxes, and economic uncertainty on the horizon, 2025 is shaping up to be a challenging year for UK firms. While the government insists that its economic strategy will deliver long-term stability, employers are growing increasingly nervous about higher costs, tighter regulations, and slowing consumer demand.

Unless confidence is restored and businesses feel supported, the UK could be heading for a wave of job losses and economic stagnation, putting further strain on workers, employers, and the government’s growth ambitions.

Read more:
UK firms plan biggest layoffs in a decade as business confidence collapses

0
FacebookTwitterGoogle +Pinterest
previous post
UK pushes for exemption from Trump’s steel tariffs
next post
Elon Musk’s government cuts could hand billions to private companies

You may also like

Time is running out for firms to grasp...

September 20, 2022

UK wages fall by 2.5% as inflation bites

February 14, 2023

Starling Bank chief Anne Boden to step down...

May 25, 2023

Co-op sells petrol courts to Asda in £600m...

August 31, 2022

India Seeks Exemption from UK Carbon Tax in...

April 19, 2024

Evolution of Modern Office Table Designs: Blending Functionality...

November 20, 2023

Proper Waste Disposal for Your Business

July 2, 2023

Healthy chef-made meal company Tastily welcomes internationally acclaimed...

September 6, 2023

Housing market rebounds after budget as buyer demand...

November 15, 2024

Liz Truss warned corporation tax cuts have not...

September 20, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved