Due to Rachel Reeve’s jobs tax, higher national insurance payments, and Labour’s new workers’ rights laws and minimum wage hikes, more and more UK businesses are looking to offshore and hire talent overseas.
Speaking with Express, Alex Fenton, The Legends Agency Group CEO, said that more and more UK businesses are now looking to fill back-office positions overseas in locations like South Africa.
“The biggest trigger was the National Insurance increase, but there are so many things going towards it.”
Read the full article on Express: “Rachel Reeves declared war on British business - now they're fighting back”
According to Sir Mel Stride, Shadow Chancellor, “Rachel Reeves promised to support working people. Instead, her first Budget hit them with higher taxes, reduced competitiveness, and drove jobs out of the UK.” Sir Mel continued by saying, “Labour’s Jobs Tax has forced businesses into paying an additional £900 in National Insurance for a worker on the average wage - that’s a devastating blow for small firms. It’s meant job losses, frozen pay, cancelled investment, and now, a worrying rise in jobs being sent abroad.
In addition, employers have warned that Labour’s Employment Rights Bill has made it harder to take on new staff, despite the Government watering down plans to give workers full employment rights from day one in a job.
UK businesses, from retail giants like Currys to smaller businesses, have started hiring overseas talent to fill back-office roles. Santander conducted a survey which found that 47% of businesses are now considering international expansion over the next three years, with managers highlighting wage inflation, energy bills and business taxation as top concerns. Sir Mel said: “The people losing out are the young, the ambitious, and those just starting out. Labour is punishing aspiration and making it harder to get on in life.”
Agencies that specialise in helping British employers recruit staff in countries such as South Africa, like the Legends Agency, have experienced a massive rise in demand. Alex Fention, the CEO, has said that in 2025 they dealt with 1,400 jobs that could have been in the UK, and 600 in 2024. Alex continued by saying, “The biggest trigger was the National Insurance increase, but there are so many things going towards it.” The London-based firm has nearly tripled its workforce from 170 to 473 employees in response to growing demand. “We are working with some really exciting companies, British success stories, and they are off-shoring jobs including management roles.”
