UK businesses cutting staff at fastest rate since 2021 after budget

Companies responding to national insurance rise by reducing hiring, PMI survey finds

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UK businesses are cutting staff numbers at the fastest rate since the global financial crisis, according to a closely watched business survey blaming the government’s tax-raising budget.

The latest snapshot from the purchasing managers index (PMI) survey, which is monitored by the Treasury and the Bank of England, showed employment levels fell in December at the fastest rate since 2009, excluding the period during the pandemic.