One in three British businesses is either cutting jobs or preparing to do so, according to a stark new report from the British Chambers of Commerce (BCC).
The warning follows the Government’s decision to raise employers’ National Insurance contributions in April – a move business leaders say is intensifying financial pressures across sectors.
Surveying over 570 firms, the BCC uncovered the highest levels of redundancy intentions in more than a decade, signalling a looming employment crisis.
The wider poll of 2,000 businesses reflects a climate of growing uncertainty, particularly among small and medium-sized enterprises (SMEs), long considered the backbone of the UK economy.
Rising operational costs, high taxes, and dwindling confidence are taking their toll, with many companies now forced to reassess staffing levels to stay afloat.
Shevaun Haviland, Director General of the BCC, underscored the seriousness of the situation:
“For the Government to achieve its Growth Mission, people must stay in work and businesses need the confidence to invest. But right now, businesses feel like they’re wading through treacle.”
This metaphor reflects widespread frustration in the business community, where recent fiscal policy is seen as a barrier to growth and job creation.
Critics argue that the Government is out of touch with the needs of Britain’s entrepreneurial sector. Eamonn Ives voiced deep concern over the disconnect, stating:
“It’s alarming how few founders believe the Government understands what’s needed to scale their businesses. Whether it’s through reducing tax burdens or reforming immigration policy, we must actively support wealth creation at home.”
Financial and legal experts echo these concerns. Andrew Wilkinson of Weil’s London restructuring team highlighted the retail sector as a “warning sign”, pointing to a squeeze from rising costs and fragile consumer confidence. As one of the UK’s largest employers, retail’s troubles are seen as a reflection of broader economic instability.
Despite industry outcry, the Treasury has defended the National Insurance rise, calling it a “tough but necessary” measure to protect key public services.
A spokesperson said:
“We’ve safeguarded take-home pay from tax hikes, delivered record investment in the NHS and defence, expanded free school meals, and kept bus fares capped at £3.”
Still, for many workers and employers, such assurances do little to stem fears over job insecurity.
As the threat of mass redundancies looms, the national mood is increasingly tense, and questions around employment support and long-term workforce resilience are gaining urgency.
At the heart of the issue lies a sobering reality: Britain could be on the cusp of its largest redundancy wave in a decade.
With businesses under pressure and households facing rising costs, calls are growing for clearer leadership and immediate intervention to safeguard jobs and stabilise the economy.
