British companies cut jobs for third straight month amid tax hikes and trade tensions

British businesses continued to cut jobs for the third consecutive month, facing pressure from rising taxes and the impact of US trade policies. According to the Office for National Statistics, the number of payrolled employees declined by 33,000 in April.

As noted by Bloomberg, the government is facing a significant challenge following a nearly 7% hike in the minimum wage and higher employer national insurance contributions. As a result of these measures, the British economy lost over 150,000 jobs in the past six months. Experts warn that this puts the Labour government's promise to boost employment in the country at risk.

The labor market is worsening due to US trade policies. The tariffs imposed by Donald Trump have negatively impacted business activity, undermining the confidence of entrepreneurs and consumers.

Bank of England Governor Andrew Bailey, when analyzing the economic situation, highlighted that setting monetary policy is a formidable task. Despite uncertainty over tariffs, he stressed that the regulator remains wary of cutting borrowing costs too soon, given lingering inflation risks.