UK Hiring Confidence Drops to 13-Year Low as Financial Services Activity Contracts

Businesses are pausing recruitment in hopes of tax relief from the Chancellor’s Mansion House speech followed by the autumn budget.

Overview

Hiring confidence among UK businesses has fallen to its lowest level since 2012, according to the BDO Business Trends barometer.
Payroll numbers dropped by 109,000 in May, reflecting stagnation in employment under rising costs and policy uncertainty.
Financial services activity contracted at the fastest rate since December 2023, marking the sector’s first decline in over a year, the CBI reports.
Financial firms expect job losses to accelerate and plan to reduce investment in land, buildings, vehicles, plants and machinery over the coming year.
Companies hope the Chancellor’s Mansion House speech and autumn budget will offer assurances that tax burdens will not intensify.