BUSINESSES are planning the most brutal round of job cuts in a decade to offset Labour’s tax rises, a survey reveals.

A third of employers are preparing to slash staff through redundancies or reduced hiring, while two in five say they will raise prices.

The Chartered Institute of Personnel and Development said Chancellor Rachel Reeves’ £25billion hike to employers’ National Insurance from April is tanking confidence.

Its analysis of more than 2,000 firms found a “sharp increase in redundancy intentions” since her October Budget.

Chief executive Peter Cheese warned: “These are the most significant downward changes in employer sentiment we’ve seen in the last ten years, outside of the pandemic.

“Employer confidence has been impacted by planned changes to employment costs, and employment indicators are heading in the wrong direction.

“Businesses have had time to digest these impending changes, with many now planning to reduce headcount, raise prices and cut investment in workforce training.”

Labour’s growth mission is also at risk, with a quarter of firms warning they will scrap plans to expand.

But Business Secretary Jonathan Reynolds told Times Radio: “Stick with us, this is the right platform for the UK.”

A Federation of Small Businesses survey found firms’ confidence hit its lowest recorded point outside the pandemic in last year’s fourth quarter.