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UK Businesses Brace for Job Cuts Amid Profit Declines

1/8/2025

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Summary

Story summary

Grant Thornton UK LLP's research reveals UK businesses anticipate low profit growth due to rising National Insurance and Minimum Wage.
More than half of surveyed businesses plan to reduce hiring or cut jobs, while 66% are reassessing employee benefits.
Medium-sized businesses are notably impacted, with 55% expecting job cuts and 65% seeking extra funding.
Confidence in profit growth is waning, as 43% of medium-sized businesses foresee profit declines.
Businesses may transfer cost increases to customers, potentially affecting inflation and interest rates.

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Story summary

Grant Thornton UK LLP's research reveals UK businesses anticipate low profit growth due to rising National Insurance and Minimum Wage.
More than half of surveyed businesses plan to reduce hiring or cut jobs, while 66% are reassessing employee benefits.
Medium-sized businesses are notably impacted, with 55% expecting job cuts and 65% seeking extra funding.
Confidence in profit growth is waning, as 43% of medium-sized businesses foresee profit declines.
Businesses may transfer cost increases to customers, potentially affecting inflation and interest rates.