How are UK businesses responding to the upcoming tax hike?

UK businesses are facing significant challenges due to an upcoming tax hike, with one in four companies planning to lay off staff. This marks the highest proportion of employers considering redundancies in a decade (excluding the pandemic period), according to a survey by the Chartered Institute of Personnel and Development. The rising national insurance rates and lower earnings threshold are particularly impacting retail and hospitality sectors, which are expected to be the hardest hit as they already struggle with higher costs. Employer confidence has fallen to its lowest point in 10 years outside the pandemic, with the tax increase set to take effect in April further undermining business outlook.