Britain’s private sector companies cut jobs at the fastest pace since February, a closely watched survey showed, as Rachel Reeves’s tax raid pushed up staffing costs.
Employment in both the manufacturing and service sectors fell for the 10th consecutive month during July, the S&P Global Flash UK PMI showed.
Bosses complained that increased payroll costs had forced them into redundancies and hiring freezes.
In April, companies faced an increased in employer National Insurance contributions and the national minimum wage, which were announced in the Chancellor’s Budget last year.
“The flash UK PMI survey for July shows the economy struggling to expand as we move into the second half of the year,” said Chris Williamson, chief business economist at S&P Global.
