Major chains cutting thousands of UK jobs including Sainsbury's, Schuh, and PLT
Major chains cutting thousands of UK jobs including Sainsbury's, Schuh, and PLT
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Several major UK chains have announced job cuts over the last week - with thousands of Brits affected. Major businesses, including retailers and supermarkets, have confirmed the cuts ahead of the tax rises in April. According to recent data from S&P PMI Index data, businesses are now cutting staff at the highest level since 2009, other than during the COVID-19 pandemic.
Alongside this, businesses also appear to be freezing hiring and not replacing voluntary leavers to avoid rising payroll costs. Commenting on the findings, Chris Williamson, from S&P Global Market Intelligence, said: “The loss of confidence, combined with widespread concerns over higher staff costs associated with the Budget, pushed employment sharply lower.”.
The tax changes were confirmed in Chancellor Rachel Reeeve's Autumn Budget last year. Employers currently pay National Insurance for most workers earning more than £9,100 a year. The amount they pay is equivalent to 13.8% of the worker's earnings above that threshold. For an employee earning £30,000, the employer would pay National Insurance of around £2,800.
From April, this rate will increase to 15%, and the threshold at which firms must pay will be reduced to £5,000. The British Retail Consortium has predicted that these changes will create a £ 2.3 billion bill for the sector. However, it is important to note that some businesses have not confirmed this as the reason for the cuts. Here, we have listed all of the businesses that have announced job cuts this month.
