Reeves' tax plan could worsen job losses in Britain

Chancellor Rachel Reeves wants to reduce unemployment in Britain, but her plans faced strong criticism. Experts warn that her proposed increase in employers’ National Insurance contributions could hurt job creation. Many believe that if companies face higher taxes, they may not hire new workers. The hospitality sector is particularly concerned. Kate Nicholls from UK Hospitality noted a "crisis of confidence" similar to when inflation was high. As a result, finding entry-level jobs in places like bars and restaurants may become more challenging. The changes could mean that over 774,000 workers will increase costs for employers by £1 billion. Recent reports show that Britain’s economic growth forecasts have been downgraded to just 1.4%. Many businesses are already planning staff cuts. The Federation of Small Businesses reported that confidence among small firms is at its lowest in ten years. If Reeves truly wants to boost jobs, experts say she should focus on making it easier to hire staff instead of raising costs. A stronger economy could improve living standards more than any government initiative. However, many businesses are considering raising prices or cutting back on investments due to these financial pressures. The retail sector is also at risk. The British Retail Consortium predicts that one in ten of the 1.5 million part-time jobs could disappear in the next three years as costs rise. Labour claims to support workers, but critics argue that decisions made by the government may lead to job losses and stagnant wages. With global tensions increasing, now may be a crucial time for reevaluation.