Job cuts fears on horizon at 300,000 small businesses

MORE than 300,000 businesses are expected to lay off workers, as a flurry of data reveals a jobs market slowdown following the Government’s Budget measures on employment.

- By Matt Kenyon

The £25billion rise in employers’ National Insurance contributions announced by Chancellor Rachel Reeves last October is set to kick in next month, while firms are also reportedly spooked by proposed employment rights legislation.

According to research from the digital lender Iwoca, more than 300,000 small firms are planning to cut staffing as a direct result of the National Insurance hike.

The survey, which polled 500 small businesses, also found that 31% intend to scale back pay rises and 27% to stall staff promotions.