Demand for new staff among businesses slumped to levels seen in 2020 in the wake of last month’s budget, according to a survey of major recruitment consultants.
A monthly report by the Recruitment and Employment Confederation (REC) trade body and accountants KPMG suggested that the tax raid on firms announced by chancellor Rachel Reeves on 30 October forced employers to “re-assess their hiring needs”.
Its index covering hiring intentions came in at its lowest level since August 2020.
The findings chime with warnings from business groups and trade bodies in the wake of the budget that the measures would hurt investment, pay and employment.
The hike to higher employer National Insurance contributions and the National Living Wage could also be passed on to consumers in the form of higher prices, they warned.
The government argues the tax take is necessary to help put the public finances on a more stable footing.
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Ms Reeves will hope that the survey’s findings represent a one-off dip rather than the start of a longer downturn in the labour market.
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CBI chief’s approach to budget tax shock
She has prioritised help for working people as part of a growth-focused agenda covering Labour’s return to government, describing the measures as an essential one-off to rebuilding core public services.
REC chief executive Neil Carberry said of the report: “It should be a surprise to no one that firms took the time to re-assess their hiring needs in November after a tough budget for employers.
“The real question now is whether businesses will return to the market as they go into next year with greater certainty about the path ahead.”
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Chancellor confident despite low growth
The economy has slowed during the second half of the year though official figures covering October, released later this week, are tipped to show a return to tepid growth.
Bank of England governor Andrew Bailey has said that the reaction of business to the budget is the “biggest issue” facing Bank policymakers.
The uncertainty is clouding forecasts for growth in 2025.
A survey by the Bank last week showed 54% of businesses would respond to the higher budget costs by reducing employment, while 38% expected lower wages.
Reeves has described the budget as a one-off to fix the public finances and pay for improved public services and has promised businesses stable and predictable tax policy to help them plan and invest.
However Jon Holt, group chief executive of KPMG UK, said expected interest rate cuts in 2025 and the government’s investment plans offered reasons for optimism.
“This should give businesses greater confidence which may help stabilise the labour market,” he said.
Former British heavyweight world champion Anthony Joshua delivered a dose of reality to YouTuber-turned-boxer Jake Paul as he won their much-anticipated showdown.
Joshua scored three knockdowns before landing a huge right hit on Paul halfway through the sixth round.
The British fighter lifted Paul’s hand in a show of respect after the fight broadcast on the streaming platform Netflix.
Image: Joshua landing the right hit that knocked out Paul. Pic: AP
“Jake Paul has done really well tonight. I want to give him his props, he got up, time and time again,” he said about his opponent.
Joshua said it “wasn’t the best performance”, adding: “It took a bit longer than expected. But the right hand finally found the destination.”
Image: Joshua celebrating his win after the fight. Pic: Reuters
Meanwhile, Paul said: “I’m feeling good, that was fun. I love this sport. I gave it my all, It’s f****** crazy. I had a blast.
“I got my ass beat, but that’s what this sport is about. I’mma (going to) come back and keep on winning.”
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He added: “I just got tired to be honest. He did amazing and hits really hard.”
Image: Jake Paul was knocked down three times before the final knockout in the sixth round. Pic: Reuters
The fight marked the end of a 14-month hiatus for Joshua, 36, while for 28-year-old Paul it was the biggest fight since his boxing career began in 2020.
At the weigh-in on Friday, Joshua boasted an almost two-stone advantage over Paul, who has regularly fought at cruiserweight since he entered the world of boxing.
Britain’s two-time world heavyweight champion tipped the scales at 243.4lbs (17st 5lbs) for his fight against Paul in Miami, while Paul weighed in at 216lbs (15st 6lbs) – a hefty 1.9st difference.
Joshua, who could not weigh more than 245lbs, is the lightest he has been since his first fight against Oleksandr Usyk in September 2021 when he was 240lbs. For his last fight against Daniel Dubois he weighed 252.5Ibs.
Image: Jake Paul and Anthony Joshua at the weigh-in. Pic: Reuters
It is also only the second time that Paul weighed in over cruiserweight limit – the other time was when he fought 58-year-old Mike Tyson. Paul defeated Tyson by unanimous decision with 80-72, 79-73, and 79-73.
This breaking news story is being updated and more details will be published shortly.
David Walliams has been dropped by his publisher HarperCollins UK following allegations of inappropriate behaviour towards women.
A spokesperson for the company said it had decided not to release any new titles by Walliams“after careful consideration, and under the leadership of its new CEO”.
“HarperCollins takes employee well-being extremely seriously and has processes in place for reporting and investigating concerns,” they added.
“To respect the privacy of individuals, we do not comment on internal matters.”
In a statement later on Friday, a spokesperson for the comedian and children’s author said: “David has never been informed of any allegations raised against him by HarperCollins.
“He was not party to any investigation or given any opportunity to answer questions. David strongly denies that he has behaved inappropriately and is taking legal advice.”
It follows a report from The Telegraph that Walliams was dropped after an investigation into allegations of inappropriate behaviour towards young women.
The 54-year-old, who shot to fame with the BBC sketch show Little Britain, is one of the country’s best-selling children’s writers.
He has written more than 40 books, which have sold more than 60 million copies worldwide and been translated into 55 languages, according to his website.
His first children’s book, The Boy in the Dress, was published by HarperCollins in 2008, and he was awarded an OBE in 2017 for services to charity and the arts.
Walliams is also known for Come Fly With Me, another BBC sketch show, and was formerly part of the judging panel for ITV’s Britain’s Got Talent.
He left the show in 2022 after a recording of him making disparaging comments about contestants was leaked.
The remarks were understood to have been both derogatory and sexually explicit, referring to one contestant as a “c***” and saying of another: “She thinks you want to f*** her, but you don’t”.
HarperCollins UK announced in October that it had appointed Kate Elton as its new chief executive, following the departure of former boss Charlie Redmayne.
The family of a nine-year-old girl stabbed to death have said she was a “beautiful soul” who was brave, kind-hearted and “always put a smile on people’s faces”.
Police were called to Lime Close in Weston-super-Mare, Somerset, just before 6.10pm on Monday, where Aria Thorpe had suffered a single stab wound.
The child was pronounced dead at the scene.
In a tribute released by Avon and Somerset Police on Friday, the girl’s family on her mother’s side said: “For those who didn’t have the privilege of knowing Aria, she was the most beautiful little soul – happy-go-lucky, full of light, and joy.
“She loved to sing and dance, and she took such pride in dressing up, always wanting to look just like her mummy.”
Tom Thorpe, the girl’s father, said: “It’s hard to put into words how devastating it is, our little Aria, that you’re up there with the angels looking over us.”
It comes as a 15-year-old boy charged with Aria’s murder appeared in court.
Image: Pic: Avon and Somerset Police
Aria was a ‘precious girl’
In their statement, Aria’s family on her mother’s side said her death “has devastated us beyond words”.
“Our hearts are broken in a way we never imagined possible,” they added.
“As a family, we are holding one another close and doing everything we can to support each other through this unimaginable time.”
They said they were “truly touched by the lovely messages we have received”, before asking “that our privacy is respected, as we try to come to terms with the terrible loss of our precious girl”.
Image: Flowers laid in memory of the young girl
‘Wacky ways and outright madness’
Mr Thorpe said: “How sad it’s going to be not hearing ‘Dad, how long left?’ on our long journeys back and forth at weekends.
He then said that Aria was “such a brave, kind-hearted and a beautiful innocent soul”, and “always put a smile on people’s faces with your wacky ways and just outright madness”.
Mr Thorpe added: “Your other little family down here in Portsmouth will forever miss you.
“We’ll miss you begging to go outside, even in the pouring rain just to have as much fun as possible in the little time we had at weekends.
“You will be greatly missed, you special little angel. A life gone far too early but I hope a life lived well. We all love you dearly. Goodnight darling.”
Teenager in court
Meanwhile, a 15-year-old boy charged with Aria’s murder appeared at Bristol Crown Court on Friday, where he was remanded.
The teenager, who cannot be named because of his age, was arrested in the Somerset village of Worle at 6.19pm on Monday.
He is next due in court on 16 March 2026. Appearing via video link from youth detention accommodation, he spoke only to confirm his name.
Judge Peter Blair KC set a provisional trial date for 15 June during the hearing.