The Christmas party, a long-standing tradition in workplaces for boosting morale and celebrating a year of hard work, seems to be under threat this year.

The Global Payroll Association (GPA) has revealed that the festive spirit is dwindling this year as work Christmas parties are being cancelled or facing budget cuts due to Labour’s Autumn Budget.

It appears that Keir Starmer, disguised as the Grinch, has stolen the festive spirit from numerous workplaces. Businesses across the nation are grappling with the financial pressure of impending changes to employer National Insurance contributions and the National Living Wage, set to take effect from April next year.

With limited spare cash, some businesses find it hard to justify hosting a work Christmas party. This is particularly true considering the average cost of a Christmas party is £90 per head.

For a small-to-medium sized business with 250 employees, this could mean a party cost of up to £22,500. A survey commissioned by the GPA found that while 78% of UK businesses usually host a Christmas party, only 63% plan to continue the tradition this year – a decrease of 15%.

A staggering 87% of those businesses not hosting a Christmas party attribute their decision directly to the employer NIC and NLW changes announced in the Autumn Budget.

The festive spirit seems to be taking a hit this year, with 20% of businesses that are still planning a Christmas party revealing they will be slashing their usual budget as a direct consequence of the Autumn Budget.

Melanie Pizzey, CEO and Founder of the Global Payroll Association, commented: “It’s simple Claus and effect – as the government applies downward pressure on businesses, they’ve got less scope to give employees the small, simple perks that have always been part of the workplace.”

She added, “With more businesses also adopting a more flexible working environment, company events such as Christmas parties provide a rare chance for colleagues to get together in person and let their hair down outside of the workplace environment.”

Pizzey expressed concern over the broader implications of budget cuts, saying: “So it’s a real shame to see that so many Christmas cut backs are being made due to the impending changes to National Living Wage and national insurance contributions.”

She concluded with a hope that cost-cutting measures won’t continue to negatively affect the workforce, especially regarding crucial aspects beyond the Christmas party, such as “accurate and efficient payroll services, effective Human Resources departments, and even vital benefits packages including paid leave for new parents.”