Scenario Urge the government to rethink the increase of 25 billion pounds of the national contributions to employers' insurance and its impact.
Steven Frost, CEO and founder of the employee's commitment specialist, Workbuzz, said: “In a country where the standard of living is already decreasing, the tax on jobs of 25 billion pounds sterling will have real consequences.”
He continues: “The economy only increased by 1.1% in 2024, but the underlying image is even worse once you take into account in a larger population, fueled by migration. Do this and you will see the GDP per capita is actually down 1% average tested or reached the point of rupture.
Frost explains that if it is easier to target affairs for taxes, there is a training effect that must be taken into account. The biggest impact for Workbuzz has not been the direct increase in his pay; It's shock – for the economy and its customers.
Frost says: “An increase in jobs on jobs may seem modest, but in companies at low margin high -rise from people in sectors such as hospitality or care, it is straw that breaks the back of the camel. We have seen many customers do redundancies, a break that addresses and light up.
Workbuzz underlines that this is not only a domestic problem. With a fifth of the Workbuzz team distributed throughout Europe, including a cluster in Poland, when the company plans to hire its next software engineer, it is not necessary to hire this person in the United Kingdom – they can largely hire them all over the world. What the tax increases is to make it slightly less attractive to hire in the United Kingdom. And workbuzz is not alone here.
Frost says: “1% is not enough to influence our decisions, but he follows the self-inscriber, which imposed an additional tax on employers in 2018, and additional taxes will make the United Kingdom a less attractive place to hire talents.”
Workbuzz also raises the fact that there is intense competition to attract the founders and the best companies to move, and the United Kingdom could soon become a less obvious choice for serial entrepreneurs who build their next business.
Frost adds: “We know that the government has difficult choices to make and I do not think that one person has all the answers, including me. However, the government should not consider companies as a bottomless milk cow. We must focus on creating a future economy by teaching children how to prosper in a global digital economy, tackling an increasing number of people who do not take work, create jobs and walk jobs for entrepreneurs. This will feed the economy and pay our NHS in twenty years. “”
