Hiring confidence worst in 13 years over tax hike fears

THE appetite for hiring among employers has fallen to lows not seen since 2012, research shows.

- By Matt Kenyon

It comes after bruising hikes to business rates and more tax rises looming at the next Budget. Research from the BDO Business Trends barometer found that firms are holding back recruitment despite indications of a summer recovery.

Employment is “stagnant” in spite of green shoots for businesses with better output.

There was a 109,000 drop in May of those on payroll “amid policy uncertainty and elevated cost pressures” the survey of 4,000 companies said.

City analysts have warned that the Government’s U-turn on proposed welfare cuts will mean a £30billion tax raid.