Employers are preparing to relocate tens of thousands of British jobs overseas in response to Chancellor Rachel Reeves’s recent Budget, leading recruitment experts have warned.
James Reed, chief executive of recruitment giant Reed, revealed that companies are exploring shifting roles to lower-cost countries like India to offset the increased expenses resulting from the “triple whammy” of higher employer National Insurance contributions, a rise in the National Living Wage, and the introduction of stronger union and workers’ rights. Government analysis suggests these new workers’ rights could cost businesses nearly £5 billion annually.
Neil Carberry, chief executive of the Recruitment and Employment Confederation, echoed these concerns, stating that he has been in discussions with business leaders contemplating offshoring jobs following the Budget announcements. “I have talked to many larger firms where the question has been about offshoring,” he said.
These developments have intensified worries about the Budget’s potential impact on the UK economy. Despite the Chancellor’s emphasis on growth, business leaders and economists caution that the measures could hinder investment, job creation, and wage growth while exacerbating inflation.
Deutsche Bank issued a note to City clients warning that the Budget could result in the loss of 100,000 jobs, both through redundancies and uncreated positions that might have otherwise materialised.
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