Thousands of United Kingdom jobs are under threat because of tax hikes unveiled by the nation's finance minister, according to a survey conducted by the Chartered Institute of Personnel and Development, or CIPD.

The research, which quizzed 2,000 companies, found hikes in the rate of National Insurance and increases in the UK's minimum wage unveiled by Chancellor of the Exchequer Rachel Reeves in October's budget and set to take effect on April 1 were to blame for the enterprises' plans to aggressively cut costs.

The CIPD survey found companies plan to reduce the size of their workforces, freeze recruitment, and raise selling prices to off set the extra costs they will face.

Peter Cheese, chief executive of the CIPD, said this year's survey was bleaker than anything his organization had seen for a decade, other than at the height of the novel coronavirus pandemic.

"It's the everyday economy sectors, such as retail and hospitality, which employ large numbers of people, that will be particularly affected by impending increases to employment costs," he said.

The survey found more than a third of the 2,000 companies quizzed plan to reduce the size of their workforce through layoffs and limited recruitment, and 42 percent expect to raise their selling prices. Around a quarter said the additional expenses attributed to Reeves' budget have led them to scale back expansion and investment plans.

The CIPD called on the UK government to off set the additional expenses enterprises will face by accelerating business support plans and the government's upcoming skills policy and by growing the economy.

The industry group's survey was published on the same day as research conducted by the Federation of Small Business, or FSB, was released.

That survey of 1,400 companies points to confidence among the UK's small businesses — and especially those in the accommodation and food services sectors — plummeting during the final three months of 2024 to a 10-year low.

The federation's small business index reported that small companies are "braced for a contraction in the size of their business in the first three months of 2025" as a result.

FSB spokesperson Tina McKenzie told the Press Association: "The fourth quarter blues reported by small firms underline how urgently the government's growth push is needed."

The FSB and CIPD surveys follow a survey last month by the British Chambers of Commerce that found business confidence among 5,000 quizzed enterprises at its lowest point for two years.

Changes made by Reeves in her October budget include a requirement that employers pay National Insurance contributions based on workers' salaries at a rate of 15 percent. The rate had previously been 13.8 percent.

In addition, the UK's minimum wage is going up on April 1, from 11.44 pounds an hour to 12.21 ($14.41 to $15.38).