Connect with us

Hi, what are you looking for?

Captain Of Success
Top Stories

Finance

JCB postpones 500-job hiring spree as chancellor’s tax hike rattles business confidence

British manufacturing giant JCB has backtracked on plans to convert 500 agency staff to permanent positions, citing “challenging market conditions” in the wake of Chancellor Rachel Reeves’s recent tax-raising Budget.

The decision comes as businesses across the country grapple with mounting costs and faltering confidence after employer National Insurance (NI) contributions were raised from 13.8 per cent to 15 per cent.

A JCB spokesman confirmed that the company “fully intends” to offer permanent contracts to a number of agency employees but said these plans would be delayed by at least six months, until trading conditions improve. The recruitment package had previously been used to help secure an inflation-linked pay deal late last year.

The U-turn has sparked an angry response from union leaders. GMB, which represents many of the affected workers, claims that JCB is reneging on the agreement behind the pay settlement. A GMB spokesman criticised the move as “unacceptable,” emphasising that “permanent contracts for the lowest-paid workers are a priority for any trade union.”

JCB is not alone in scaling back staffing in anticipation of a downturn. The construction equipment specialist had already shed 230 agency workers before the Budget, amid fears of a slump in factory orders. New data from S&P Global reinforces this pessimism, with December’s purchasing managers’ index (PMI) for manufacturing falling to 47, its weakest reading in 11 months. According to Rob Dobson, director at S&P Global, the Chancellor’s Budget has dampened confidence and raised costs “at UK factories and their clients alike,” further stifling hiring plans.

The impact of the Chancellor’s £25 billion tax raid appears to be rippling through other industries, too. Genting Casino, operating 32 sites in the UK, has lowered its annual pay offer for staff from 3 per cent to 2 per cent, while Castlewood Hotels, which runs three properties in the South East, said the combined effect of increased NI contributions and a higher minimum wage could cost the firm an additional £200,000 this year.

Castlewood’s owner, Daniel Sangiuseppe, has postponed refurbishments, cut staff hours, and halved planned pay rises across his 140-strong workforce. “The rhetoric was all about growth,” he said. “But this particular policy, as far as we’re concerned, is anti-growth.”

As the Chancellor continues to defend her Budget measures, sentiment among manufacturers and service providers remains fragile. December’s data suggests UK businesses face a protracted period of caution, leading to reduced recruitment, scaled-back investments, and concerns about an impending “industrial recession.”

    You May Also Like

    Stock Markets

    Students of the Institute of Civil Engineering of the University of the Philippines Diliman experience what it’s like on-board the Circular Explorer and attend...

    Stock Markets

    BW FILE PHOTO THE NATIONAL Government’s (NG) debt service bill surged year on year in November as both interest and amortization payments rose, data...

    Stock Markets

    In the photo are (seated L to R) Francisco “Coco” D.C. Mauricio, WeFund Lending Corp. President and CEO; Danilo “Bong” J. Mojica II, UnionDigital...

    Stock Markets

    THE DEVELOPMENT Bank of the Philippines (DBP) will again request for regulatory relief this year as it seeks to boost its capital position. “Just...

    Disclaimer: CaptainOfSuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
    The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.