Two-thirds (67 percent) of UK companies are considering cutting jobs as a result of economic uncertainty, according to research with 500 senior business decision-makers.
More than three quarters (76 percent) of respondents pointed to chancellor Rachel Reeves’ national insurance (NI) increases as the main reason for reducing headcount, followed by 65 percent that said high interest rates were a key reason to think about job cuts.
The survey, conducted by Censuswide on behalf of financial specialist provider Payally, revealed further business concerns. More than half the respondents highlighted the high costs associated with payroll systems (54 percent) and six in ten (62 percent) flagged up issues with the overhead costs around payment transfers.
More than half (52 percent) said they plan to review their payroll and payments provider in the next year. Meanwhile, a further 63 percent said they intended to expand overseas to increase revenue. And 56 percent of respondents said they would benefit from a single platform to manage their payment systems.
Rafal Andzejevski, founder and CEO of Payally, said: “With businesses facing huge financial pressures and higher taxes, ambitious organisations are seeking new routes to drive revenue and weather the economic storm.
“For too long the high costs associated with international payment transfers and payroll systems have been a roadblock to business growth. Moving forward, organisations seeking faster, more effective operations should look to consolidate these core functions with one single platform and provider.”
