Employers in the UK are preparing to increase prices for consumers due to higher payroll taxes, raising concerns about persistent inflation. A survey by S&P Global revealed that nearly 50% of firms intend to pass on the national insurance cost to consumers, while 36% plan to reduce headcount. The survey also indicated that over 20% of companies would cut back on investment spending. With unemployment rising to 4.6% and the economy shedding 250,000 jobs in the past year, the outlook for growth remains uncertain. Meanwhile, the Institute of Chartered Accountants in England and Wales reports a decline in business confidence, with the index falling to its lowest level since 2022.
