Growing concern for business and employees amid rising concern about future economic growth
A recent survey had today reported that one in four service companies are cutting jobs after what has been described as a “tax raid” by the Labour Government.
Companies are said to be taking damage control measures to help balance the books following an increase in National Insurance from 13.8% to 15% on a worker’s earnings above £175 from April 2025. Additionally, the threshold at which employers start to pay the tax on an employee’s salary will be reduced.
These changes come at significant cost to business who are also faced with paying higher minimum wages and hikes in business tax. As referred to in my previous blogs, businesses are also having to adopt to a raft of legislative changes aimed at improving workers’ rights. No surprise then that business are becoming increasingly concerned about the impact this will have on the growth of the UK economy and are bracing themselves for a challenging year ahead.
Amid falling business and consumer confidence companies are looking for ways to address limited growth and increased business costs and are undertaking wholesale reviews and restructures of their businesses. Job losses are inevitably. For many the hope of a pay increase in 2025 is looking less likely. Recruitment is said also to be in sharp decline.
This makes disappointing reading for the New Year and we at Lawson West recognise this will be a real cause of concern for many businesses and employees alike.
Lawson West have a wealth of experience advising small and large companies looking to restructure their businesses. We are a multi discipline practice with the ability to provide a comprehensive service to your business covering all aspects of commercial law, property law, insolvency and employment law, tailored to meet your specific needs.
We also advise employees who have been dismissed or have been told they are at risk of redundancy. We can advise on all aspects of employment law, including your legal rights and entitlements as well as providing advice and assistance negotiating and concluding settlement agreements.
Whatever 2025 has in store, we have a team of lawyers at Lawson West that can help you navigate the challenges that lie ahead.
Don’t have sleepless nights. Give us a call. We are here to help you.
If you believe you have a situation where you require legal advice, please contact us on telephone 0116 212 1000 or 01858 445 480, alternatively fill in the free Contact Us form and we will get in touch as soon as possible.
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