London, United Kingdom – British firms are preparing to reduce staff numbers while maintaining price increases at rates similar to previous expectations, according to a recent survey by the Bank of England (BoE). The survey of more than 2,000 companies was conducted between November 7 and November 21, 2025, prior to Finance Minister Rachel Reeves’ annual budget announcement.

The Decision Maker Panel survey indicated that firms plan to raise prices by 3.7% over the next 12 months, slightly higher than the 3.6% expected in the prior month. At the same time, employment expectations weakened, falling by 0.1 percentage points to -0.2%, signaling a modest contraction in staffing levels in the coming year.

Inflation and Wage Growth Outlook

Companies’ expectations for consumer price inflation over the next year remained stable at 3.4% in November. Recent data shows UK consumer price inflation fell to 3.6% in October, which the BoE interprets as a peak, supporting the possibility of interest rate cuts from the current 4%.

The survey also highlighted expected wage growth, with businesses projecting an increase of 3.8% over the coming year, a slight uptick of 0.1 percentage points from October. These figures reflect the continued tension between cost pressures on businesses and affordability concerns for consumers in the UK economy.

Implications for the UK Economy

Economists suggest that the combination of job reductions and moderate price increases indicates firms are seeking to manage costs amid uncertain economic conditions, while sustaining profitability. The data also underscores the BoE’s careful balancing act between supporting economic growth and containing inflationary pressures.

The survey’s insights provide a snapshot of business sentiment heading into the post-budget period, offering guidance on potential monetary policy adjustments and labor market trends in the UK.