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.
“While we had hoped to bring Mr Doughty’s family better news, we are thankful to be able to provide them with some closure,” said special agent Kristin Rehler.
“This discovery is the direct result of our partnerships and special agents from FBI Jacksonville’s Cellular Analysis Survey Team (CAST), who were relentless in their efforts to narrow down potential search locations.”
Home Secretary Yvette Cooper has said Runcorn needs a new Labour MP after Mike Amesbury was jailed for beating up a constituent – and will keep his £91,000 MPs salary in prison.
She told Wilfred Froston Sky News Breakfast: “Whether it is resigning or through recall, everyone’s clear – the people of Runcorn deserve better representation, and that would come by having a newly elected MP.”
Amesbury, who has been an MP since 2017, remains as the MP for Runcorn and Helsby after being jailed for 10 weeks on Monday.
He had at an earlier hearing pleaded guilty to assaulting Paul Fellows, 45 by punching him to the ground and hitting him five more times in Frodsham, Cheshire, after a night out last October.
He has not resigned, despite calls for him to do so.
The 55-year-old MP will keep receiving his £91,000 salary while in prison because parliamentary rules state a recall petition, which kickstarts a by-election, can only happen once an appeal period for a custodial sentence of a year or less is exhausted.
Amesbury’s lawyer stated in court he would be appealing the 10-week sentence, of which the MP will serve four weeks in HMP Altcourse in Liverpool.
There is also no mechanism to stop pay for MPs, unless they are suspended from the House of Commons, which has not yet happened for Amesbury.
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CCTV shows Labour MP punch man
Ms Cooper added: “It’s completely unacceptable what has happened. No matter who you are. No one is above the law.”
On whether the government is considering changing the law so MPs who receive a prison sentence can no longer serve as an MP, Ms Cooper said: “I think these are matters, obviously, for the parliamentary authorities and processes that is separate from the decisions government make.
“But we are clear we need a new representation in Runcorn.”
Conservative shadow minister Victoria Atkins told Sky News the public and MPs have been “disgusted” by Amesbury keeping his job and called for the rules to be changed.
“I find it extraordinary that someone can claim their salary from their prison cell when their job is to be here in parliament, representing their constituents,” she said.
“I think the government needs to look at this and we will look at these measures very, very carefully, whatever they bring forward.
“I share the public’s disgust that a Labour MP is sitting in prison, serving a prison sentence because he beat up a constituent.”
After the judge left the courtroom in Chester on Monday, following sentencing, Amesbury’s lawyer asked for him to return and requested bail while he appealed the sentence.
Judge Tan Ikram returned to the court, sat down, paused briefly and said: “Application refused.”
The head of NHS England has announced she is standing down.
Amanda Pritchard was the first woman to take on the role in 2021, having previously served as NHS England’s chief operating officer, and before that, the former head of Guy’s and St Thomas’ NHS Foundation Trust.
Her decision to step down comes weeks after MPs on the cross-party Commons public accounts and health and social care committees accused her of lacking the “drive and dynamism” to radically reform the service.
It has been a “hugely difficult decision for me to stand down”, she said in a statement on Tuesday.
“I believe now is the right time – with the NHS making continued progress in our recovery, and with the foundations firmly in place to deliver the 10 Year Health Plan.”
She said it had been “an enormous privilege to lead the NHS in England through what has undoubtedly been the most difficult period in its history”.
“The NHS is full of extraordinary people, who do extraordinary things every day for patients,” she said, adding: “I am confident they will continue to achieve incredible things for patients now, and into the future.”
Image: Ms Pritchard giving evidence to MPs in the House of Commons earlier this month. Pic: PA
MPs on the health and social care committee earlier this month said they were disappointed and frustrated by the “lengthy and diffuse answers” Ms Pritchard and other officials gave them under questioning.
Last week, she admitted “we’re not all brilliant performers at committee hearings” as she was challenged on the issue on BBC Breakfast.
Health Secretary Wes Streeting said Ms Pritchard could be “enormously proud” of her tenure.
He said: “Amanda can be enormously proud of the leadership she has given in the face of the biggest health emergency for our country in modern history, as well as steering NHS England during turbulent political waters and six secretaries of state in her time as chief executive.
“She has led with integrity and unwavering commitment.”
NHS England said that having discussed everything with Mr Streeting in recent months – and now that the NHS has “turned a corner on recovery from the pandemic and the foundations are in place to make the necessary changes to the centre to best support the wider NHS” – Ms Pritchard had “decided now is the right time to stand down”.
Sir James Mackey will take over as “transition” chief executive from the first of April on a secondment basis, it said.
He is the chief executive of Newcastle Hospitals Foundation Trust and national director of elective recovery.
Ms Pritchard, who is married with three children and studied modern history at St Anne’s College, Oxford, was also deputy chief executive at Chelsea and Westminster NHS Foundation Trust.