Pay budgets to fall as business bosses worry about Brexit

New survey warns of fallout from referendum uncertainty

The pay budgets of employers in Peterborough are expected to fall this year because of Brexit uncertainties, a survey has warned Experts warn there is likely to be a 0.3 per cent drop this year in the amount of money Peterborough firms earmark for staff pay compared to 2016.

The Peterborough UK Reward Management report says pay budgets will fall from 2.3 per cent last year to two per cent in 2017.

The report’s authors blame Brexit uncertainties and inflation for the expected drop.

The data is provided by Peterborough businesses taking part in the UK-wide Reward Management survey, produced jointly by Paydata and Anne Corder Recruitment, of Peterborough.

Twenty-five local businesses from a variety of sectors and staff numbers took part.

Tim Kellett, director at Paydata, said: “The expected drop in pay budgets amongst Peterborough businesses echoes a similar, national decrease – all of which is set against a background of Brexit uncertainties and rising inflation.

“For the last few years, increases in pay budgets have been above inflation. This year, however, they are on par with, or slightly below consumer price index inflation rate. That means pay budgets aren’t increasing as quickly as the cost of living is rising. This is the first time in quite some time that we’ve seen pay budgets increasing slower than the rate of inflation.”

Anne Corder, owner of Lynch Wood-based recruitment agency Anne Corder Recruitment, said: “The survey is a crucial tool for participants, allowing them access to the local data they need to ensure their salaries and benefits are competitive.” Anne Corder of Anne Corder Recruitment, of Peterborough. Companies in Peterborough may cut their pay budgets.