Tax and pay hikes to see firms pay £2,300 more per low-wage worker this year

The Independent relies on donations to fund on-the-ground reporting on issues like reproductive rights, climate change, and Big Tech in the US, providing unbiased coverage accessible to all. In response to Rachel Reeves’ Budget, UK businesses may see a significant increase in costs per worker by 2025 due to pay raises and tax hikes, impacting minimum wage workers and leading to job losses in some sectors. The tax burden is projected to hit record highs, with national insurance changes and rising minimum wages contributing to a 21.3% total labor cost spent on taxes in 2025, the highest proportion on record, as reported by the Centre for Policy Studies.

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