UK Businesses Cut Hiring Plans as Tax and Wage Costs Loom

Surveys reveal slower recruitment, rising redundancies, and cooling pay growth ahead of April's cost increases.

The UK's job market is slowing, with permanent hiring declining for the 29th consecutive month, according to KPMG and REC data.
Redundancies are expected to rise as businesses prepare for a 6.7% minimum wage hike and a £25 billion increase in employer national insurance contributions starting in April.
Vacancies have decreased for the 16th straight month, while starting salaries are rising at their slowest pace in four years.
Surveys suggest over 300,000 small businesses plan to reduce staff to offset rising costs, with many also delaying promotions and cutting pay increases.
Official unemployment remains historically low at 4.4%, but business confidence and economic activity are showing signs of weakening.