(Commonwealth_Europe) It’s becoming an increasingly familiar story in offices across the UK: a colleague’s job disappears, not because the company is downsizing, but because that role is quietly moved abroad. The names and faces behind those jobs may change, but the reasons are starting to sound the same – rising costs, tighter margins, and a growing sense among employers that hiring British talent has simply become too expensive.
Since the government raised employers’ National Insurance contributions from 13.8% to 15% earlier this year, many businesses have found themselves having to make difficult decisions just to stay financially viable. For small and medium-sized firms, especially, that extra cost—around £900 more per employee at an average wage—isn’t just a line on a spreadsheet. It’s the pivotal moment that compels them to reconsider their hiring practices and locations.
One of the most telling shifts is happening not in the boardrooms of multinational giants, but in the hearts of everyday British businesses – marketing agencies, recruitment firms, and administrative services. Not so long ago, young British workers, fresh out of school or university, often filled these roles, eager to build their careers. But now, more and more of these jobs are heading thousands of miles away to places like South Africa.
Alex Fenton, the director of The Legends Agency, has closely observed this shift. His company helps UK firms recruit remote employees in South Africa, and since the tax hike came into effect in April, he’s seen a surge in enquiries. “We are seeing swathes and swathes of skilled jobs that should be going to entry-level British talent, if I’m honest about it,” he says. “Entrepreneurs are just looking at the numbers and saying, ‘I don’t want to hire in the UK anymore. It’s incredibly expensive.”
The numbers tell part of the story; employer tax contributions in South Africa are just 3%, and salaries are typically around half those in the UK. But it’s not just about money. South Africa offers a pool of educated, English-speaking talent, with just a one-hour time difference. For many UK firms, it feels like a no-brainer – why pay more for the same quality of work?
And it’s not only small businesses making the shift. Larger firms like Grant Thornton have already begun outsourcing entire departments. All 40 of the company’s UK secretarial roles, for example, have now been moved to India. Though the firm insists only a small number of people left, for those individuals, it was a job lost and a stark reminder of how quickly roles can disappear when costs rise.
The emotional weight of these changes can’t be ignored. For British workers, especially young people trying to start their careers, it’s disheartening. Many are already facing a challenging job market, with vacancies dropping steadily over the past three years. Now, as they strive to establish a foothold in the job market, these opportunities are becoming increasingly limited.
Neil Carberry, head of the Recruitment and Employment Confederation, says this phenomenon isn’t just a one-off response to a single policy decision. “The quality of offshore options now is miles ahead of where it was five or ten years ago,” he explains. “So when taxes go up, business leaders are asking, ‘How many jobs do I have to offshore to make the numbers work?’”
Critics of the current government argue that they should have anticipated this moment. The shadow chancellor, Sir Mel Stride, contends that Labour’s tax hike has put businesses in a precarious position. “It’s meant job losses, frozen pay, cancelled investment – and now a worrying rise in jobs being sent abroad,” he said.
The government, for its part, insists the bigger picture is still strong. A Treasury spokesperson pointed to more than 380,000 new jobs created since the start of this parliament and said business confidence is at a decade-long high. They say the tax decisions are helping fund vital services like the NHS, while trade deals and reforms are laying the groundwork for long-term economic growth.
But for many business owners and workers, the broader picture doesn’t soften the sting of what’s happening right now. Behind each job moved overseas is a person – someone who hoped to build a future, learn on the job, and maybe even grow within a company. And for every one of those people, the message is clear: when costs rise, the search for savings doesn’t stop at the UK’s borders.
As this trend continues, the question isn’t just about economic policy or employer strategy. It’s about what kind of workforce Britain wants to build – and who gets left behind when doing business at home becomes too expensive to justify.
