UK firms plan to raise prices and cut employment after tax hike, BoE survey shows
British businesses expect to raise prices and reduce headcount in response to an increase in employers’ social security contributions that will take effect in April, a Bank of England survey showed on Thursday. The Bank of England’s Decision M
British businesses expect to raise prices and reduce headcount in response to an increase in employers’ social security contributions that will take effect in April, a Bank of England survey showed on Thursday.
The Bank of England’s Decision Maker Panel – a survey of more than 2,000 firms – showed 61 per cent expected to make lower profits, 54 per cent planned to raise prices, 53 per cent expected lower employment and 39 per cent intended to scale back pay rises due to the rise in National Insurance Contributions announced in Oct. 30’s budget.
Businesses plan to raise pay by 4.0 per cent over the coming year and to increase prices by 3.8 per cent, 0.1 percentage points more than in the November survey, the BoE said.
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