Page 11 - Gi flipbook February 2018

UK employers keep hiring but see work in any EU country.
“Firms are concerned
Brexit risks ahead, survey shows about finding the right staff
in the future, and this is
damaging the outlook for
investment in the longer
above the rate of retail price term,” said Neil Carberry,
inflation, which could mean the CBI’s Managing Director
increases of around three for People Policy.
per cent, up from about Almost 90 per cent of
2.5 per cent now, reports companies said continued
Reuters. Such an increase access to skills and labour
would be line with the Bank from the EU was important
of England’s forecasts. or vital.
The failure of pay to “The worst thing we
pick up quickly, even as could do would be to
unemployment falls fast, undermine the many EU
has puzzled central banks in nationals already here
many rich countries. Britain’s and contributing to our
problem is made more acute businesses and public
by the spike in inflation services,” Carberry said.
The UK has said it will no caused by the pound’s London and Brussels
longer uphold EU freedom decline in value after the have agreed to offer
of movement rules Brexit vote in 2016. equal treatment on social
The CBI survey, which security, healthcare,
was conducted before employment and education
BRITISH EMPLOYERS recruitment firm Pertemps Prime Minister Theresa and that Britain will enable
PLAN to hire more workers showed, up from 41 per May secured an agreement its judges to ask the
and raise pay more quickly cent in last year’s survey. from Brussels to move European Court of Justice
in 2018, but they also fear Strong job creation has Brexit talks to a second to weigh in when necessary
that Brexit will make the been a bright spot in Britain’s phase, showed companies for eight years after Brexit,
country a less attractive economy in recent years, were worried about aiming to create a common
place to do business, a new but recent official data has the outlook for Britain’s body of law.
survey shows. shown a fall in employment, economy further ahead. Nearly two-thirds of
Fifty-one per cent of leading some economists to May has said she will companies taking part in
employers expect to wonder if the labour market no longer uphold the the CBI survey said they
expand their workforce is about to weaken. European Union’s freedom thought Britain will become
next year, the survey by Slightly more than half of of movement rules which a less attractive place in
the Confederation of businesses expected to raise allow workers from which to do business in five
British Industry (CBI) and pay this year in line with or countries in the bloc to seek years’ time. ■

Pension deficits at UK’s biggest firms falls pension scheme that might

£9bn as blue-chips race to fill black hole have had an employer
cost of 10 to 15 per cent
of payroll in the late
1980s now costs the same
THE PENSION DEFICIT of 100 firms race to fill their billion, JLT said, increasing employer well over 40 per
UK blue chips has fallen £9 huge pension black holes, the pressure on companies cent of payroll.”
billion since 2016 as FTSE reports The Telegraph. to close generous defined Just 19 FTSE 100 firms
The Royal Bank of benefit pension schemes still provide a significant
Scotland poured £4.5 billion that pay out a proportion number of staff with a DB
into its group pension fund of an employee’s final pension scheme.
last year, joining 51 others salary for life. Although pension deficits
on the FTSE 100 index “A typical scheme now are going down, JLT warned
that made “significant” costs employers more than that a “significant” number
contributions to their three times the cost of 30 of firms are still sitting on
pension funds, according to years ago, largely as a result pension pots that represent
JLT Employment Benefits. of increased longevity and a “material risk”, with the
However, the total changing market conditions,” deficits at 11 household
cost of pension liabilities said Charles Cowling, a names – including
swelled 20 per cent on director of JLT. Sainsbury’s – dwarfing their
the previous year to £705 “A defined benefit stock market value. ■

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News.indd 6 18/01/2018 11:18