More than half of UK businesses are planning to increase prices and reduce their workforce due to a significant tax increase on employer payrolls.

The decision to pass the tax burden onto consumers through higher prices was indicated by 54% of chief financial officers, according to the Bank of England's Decision Maker Panel survey.

The same survey also revealed that the same percentage of CFOs expects a decrease in employment levels as a result of the tax hike.

This move is anticipated to worsen inflationary pressures in the UK economy, raising concerns among economists and policymakers about its potential impact on consumer spending and overall economic growth.