London Sees Most Job Losses in Britain After Govt Tax Hikes

London is bearing the brunt of Britain's jobs slowdown as a combination of tax rises, elevated wage costs and weak consumer spending force the city's businesses to cut payrolls faster than in the rest of the country.

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LONDON -

The capital has shed almost 45,000 jobs since October 2024 when the Labour government announced a £26 billion (S$45.2 billion) hike in employers' national insurance — a payroll tax — and a higher minimum wage, according to tax data.

It means one in four of all job losses across the country has come from Britain's most productive region. When combined with the surrounding south-east region, the rate rises to nearly four in 10 lost jobs.

Retail and hospitality are among the worst-affected sectors, according to figures published by the Office for National Statistics earlier in the week, and a large share of these roles are based in London - business group UKHospitality says about a third of jobs in its sector are in the capital.