Employers brace for job cuts |
| Employers are preparing for layoffs as payroll costs rise, according to the Institute of Directors' monthly business confidence survey. Headcount expectations fell from -17 in November to -21 in December, indicating a potential increase in unemployment. Anna Leach, chief economist at the IoD, commented: "Hiring freezes remain widespread, amidst concern over further cost increases." Business confidence remains low, with a score of -66, reflecting ongoing economic challenges. When asked what would have the greatest impact on business confidence in 2026, Leach said "top of the list were a lower tax burden and scaling back the proposed changes to employment law." She added: "More promisingly, improvements in regulation, trade deals with the EU, lower tax complexity and lower business costs were also high up the list – areas where the government has stated ambitions and where tangible progress could begin to rebuild confidence." |
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