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Evening Standard

Business

Anna Wise

Firms to pass on tax hikes through lower wages in long run, Bank executive says

Sarah Breeden Bank of England PA Graphics

Bank of England deputy governor Sarah Breeden (Benjamin Cremel/PA) - (PA Wire)

A Bank of England deputy governor has predicted that higher national insurance taxes for UK businesses will lead to lower wages for staff in the “long run”.

Sarah Breeden, the Bank’s deputy governor for financial stability, also said firms might respond to the tax hikes by cutting employees or raising prices.

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