
Hiring Slowdown Outside London After Budget Announcement
The recruitment firm Robert Walters reported a significant drop in hiring activity outside London following Chancellor Rachel Reeves' first Budget announcement. Fee income from operations outside the capital fell by 45% during the final quarter of 2024, while London-based income rose by 3%.
The company attributed the decline to a hiring slowdown triggered by Ms Reeves's tax measures, including a £25bn increase in employers' National Insurance contributions. Toby Fowlston, chief executive of Robert Walters, stated that the surcharge "has been a dent to employers, and obviously that cost is needing to be absorbed."
The 30 October Budget also impacted business confidence, according to a trading update from Robert Walters. The Institute of Directors reported that business confidence fell to its lowest level since the first Covid lockdown in December 2024. This decline in confidence further dampened employers' hiring plans in the closing months of 2024.
I'm on a good salary, the market is volatile, why would I move?"
Looking ahead, Mr Fowlston expressed concern about Labour's plans to overhaul UK employment law. He warned that "further increases in costs" for employers would be "critical" for Labour to address in collaboration with businesses. He also cautioned that reforms, especially around zero-hours contracts, could have unintended negative consequences.