Since Labour has got into power more than 150,000 jobs has been lost as businesses are warning labour costs are one of their largest “barriers to growth.”
The government has been given a “stark warning” how their policies is affecting businesses, the loss of jobs and the loss of investment.
Tina McKenzie, Policy Chair at the Federation of Small Businesses (FSB) said, “It’s of course alarming to see the sustained fall in the number of employees on payroll.
“The rise in employer National Insurance Contributions (NICs) will ultimately leave many paying more tax on employing people.”
She added, “The Government also needs to think again and rework the parts of the Employment Rights Bill that will wreak havoc on hiring.
“We know that 75% of small employers are worried about how the Bill will expand the grounds for unfair dismissal, and 74% fear changes to statutory sick pay.”
Shadow Chancellor Mel Stride said, “The loss of 150,000 payroll jobs since Labour came to power is not just a statistic – it’s a stark warning. It reflects the very real consequences of Labour’s reckless economic mismanagement.
“Instead of supporting growth and job creation, they’ve chosen to hit businesses and workers with punishing tax hikes, including their damaging jobs tax.
“At a time when we should be encouraging employers to invest, hire, and grow, Labour has made it more expensive to create jobs and harder for people to find work. These decisions are not just economically short-sighted – they are fundamentally irresponsible.”
He added, “Every lost job is a lost opportunity, a lost future, a family struggling to make ends meet. Labour’s economic policies are costing Britain dearly.
“You can’t tax your way to growth. As an entrepreneur, who has built businesses from scratch, I know it’s business that creates prosperity.
“Taxing work means lower salaries, fewer jobs, more offshoring of jobs and more redundancies. Plus higher prices, higher interest rates and lower growth. Labour’s front bench doesn’t get it because they lack any real-world business experience.”
Matthew Percival of the CBI said: “Our surveys show that businesses’ hiring intentions have been negative for several months, with cost pressures, heightened uncertainty and subdued trading conditions cited as key factors. While some of this is about tariffs, UK Government decisions matter too, potentially more so.
“The increase in National Insurance Contributions is a big factor, along with the National Living Wage and the anticipated cost of the Employment Rights Bill.”
A Treasury spokesperson said, “We are a pro-business government. We have seen four interest rate cuts since the election, the fastest growth in the G7 at the start of this year, and in the last month we have secured new economic deals with the EU, US and India to help lower costs for businesses.
“We have also capped corporation tax, provided business rates relief, and are protecting the smallest businesses from the employer National Insurance increases.”
