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Reeves’s salary sacrifice tax will force job cuts, say firms
The Observer
|May 31, 2026
More than two-thirds of UK employers say tax on salary sacrifice pension contributions included in last year’s budget would force them to take action by cutting jobs, offshoring roles or reducing other investments.
A survey of more than 2,600 firms by the Confederation of British Industry (CBI), shared exclusively with The Observer, found that ending a tax exemption on the schemes – by which employees forgo part of their salary in exchange for benefits or pension contributions – would disproportionately affect the finances of young people entering the job market and those returning to the workforce.
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