Stagflation Fears Rise As Firms Slash Jobs Thanks To Budget Debacle

[webbo3]

https://www.dailymail.co.uk/news/article-14422771/Stagflation-fears-rise-firms-slash-jobs-Reeves-Budget.html

\\In yet another blow to the Chancellor, a damning report showed firms are now slashing jobs at the fastest pace since the financial crisis – excluding the pandemic – as they brace for tax hikes in April.//

Rachel from complaints needs to go

[ToraToraTora]

The economy kryptonite budget has destroyed the economy, who'd have thunk it?

[New Judge]

I can recall one or two of our correspondents on AB suggesting that the Employers' NI hike was a bit overdramatised and there would be no such "unintended consequences".

Others of us pointed out that in order to manage the considerable rise (over £1,000 or 29% for an employee paid £35k per year) employers would do one (or more) of three things: increase prices; reduce their headcount; or close down.

The number of jobs to be lost as a result of this remains to be seen. But it will certainly be greater than zero. An employer employing 100 staff on £35k will have to shed three of them to recoup next April's NI rise. If he wants to give them all a 5% pay increase, five of them will have to go. Either that or he will have to increase his prices.

If he lets three of them go and gives no pay rise to those remaining, the net benefit to the Exchequer will be nil (disregarding any benefits the redundant three may claim or any less VAT and Excise Duty they would pay in their reduced circumstances).

I wonder if His Majesty's Chancellor of the Exchequer (or her lackies) did any of these simple sums?

[david small]

The effects of this ill thought out draconian budget are already evident and will worsen.

[Deskdiary]

4.03pm - indeed. Untitled felt people were "making a fuss" over the NI. 
 

It was super-naive, and yet when asked he has never justified it. In fact, if anything, he's avoided it because he knows he ballsed-up with the comment.

[ToraToraTora]

"I wonder if His Majesty's Chancellor of the Exchequer (or her lackies) did any of these simple sums?" - I fear simple sums are far too difficult for the morons running the show.