A quarter of UK businesses are planning to make redundancies as they bid to cut costs in the wake of the chancellor's Budget.
The startling statistic comes from a survey conducted by the Chartered Institute of Personnel and Development (CIPD) and is the highest proportion of planned job cuts in a decade, other than at the height of the pandemic.
And separate research also showed small business confidence had plummeted to a five-year low.
The Telegraph reports the retail and hospitality sectors are expected to be the worst hit when Rachel Reeves' National Insurance contributions overhaul takes effect.
Peter Cheese, chief executive of the professional body for the HR industry, said: “These are the most significant downward changes in employer sentiment we’ve seen in the last 10 years, outside the pandemic.
“Employer confidence has been impacted by planned changes to employment costs, and employment indicators are heading in the wrong direction.”
In efforts to balance the books, companies are also cutting back on hiring, with a third either making staff redundant or bringing in fewer employees.
The survey data also reveals 42% of firms are looking at increasing their prices to counter their rising tax bills, and a quarter are abandoning plans to invest in and grow their business.
Tina McKenzie, of the Federation of Small Businesses (FSB), said: "The upcoming Employment Rights Bill is a major source of stress for small firms, with nine in ten business owners saying they are concerned about its introduction, and this is undoubtedly a major cause of the very subdued confidence levels seen in our research.”