Reeves is set to finally face MPs today after fleeing to China leaving trashed markets and a plummeting pound in her wake. Starmer eventually backed his embattled Chancellor with a lukewarm declaration of “full confidence”— four hours after refusing to guarantee her position. It’s not just the markets and her party that are in turmoil…
Businesses have been forced to slash staff and cut costs after the Budget according to the British Chambers of Commerce‘s latest survey. In Q4, a staggering 75% of businesses reported pressure to raise prices due to spiralling labour costs. Meanwhile 16% had already reduced staff, and the share of companies expanding their workforce plummeted to 24%, down from 27% in Q3. BCC’s Jane Gratton warned things will only get worse:
“Our latest concerning results are likely to represent just the tip of the iceberg. Business confidence has been hit hard since the Budget. Employers are now having to plan for a significant increase in employment costs, with steep rises in National Insurance and the minimum wage coming down the track in April. This will inevitably [have an] impact on recruitment, retention and staff development. Firms tell us they will have to make some tough decisions to balance the books.”
It’s not just offices feeling the strain. Louise Maclean, a business chief in the hospitality sector, has delivered a sobering warning: pubs will have no choice but to hike prices across the board and cut back opening hours. The much-vaunted “penny off a pint” clearly done nothing to help swallow the bitter pill. Maclean put it bluntly: “The phrase we are using is ‘Survive 25.’” Guido reckons Reeves is clinging to that same mantra…
Lord Khan in the Telegraph: “I hope, and I say this in a non-pompous way, that the public service I do will bring rewards in this world and the hereafter,” he says. “I’m hoping the work I do is earning me Brownie points.”