According to a survey released on Monday, British companies are intending to raise prices and reduce their headcount as confidence among small businesses has hit a five year low, Reuters reports.
The Chartered Institute of Personnel Development (CIPD) who are a professional human resources industry body, warned that nine out of ten employers believe the Chancellor’s Autumn Budget will raise taxes and employment costs which is unsustainable.
The survey shows that there has also been a dramatic fall in business confidence since Rachel Reeve’s announced her 30 October Budget last year.
Some 42% intend to raise prices and 32% will reduce their headcount, either by recruiting less or making redundancies.
CIPD Chief Executive Peter Cheese said, “Employer confidence has been impacted by planned changes to employment costs, and employment indicators are heading in the wrong direction.”
The fourth-quarter blues reported by small firms underline how urgently the government’s growth push is needed,” Tina McKenzie, the Federation of Small Businesses (FSB) policy chair, said.
