British economy heading for ‘worst of all worlds’, business leaders warn over Labour Budget

Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Get our free View from Westminster email SIGN UP I would like to be emailed about offers, events and updates from The Independent. “As we head into 2025, firms are looking to the government to boost confidence and to give them a reason to invest, whether that’s long overdue moves to reform the apprenticeship levy, supporting the health of the workforce through increased occupational health incentives, or a reform of business rates.” open image in gallery The chancellor announced an increase to employer’s national insurance in October Rachel Reeves has previously defended her decision to raise taxes at the Budget, insisting her plan provided the stability needed to secure growth. “But I stand by those choices as the right choices for our country: investment to fix the NHS and rebuild Britain while ensuring working people don’t face higher taxes in their payslips.” open image in gallery Family businesses ‘are cutting agencies, stopping recruitment, shedding staff, cancelling bonuses’, warns IBN chair John Longworth The CBI’s growth indicator survey, based on responses from 899 companies between 25 November and 12 December this year, found expectations for growth are now at their weakest since November 2022. Ms Reeves appears to be enterprise illiterate, relying on the magic money tree of taxes and in so doing, driving the UK from a position of growth to one of stagflation.” open image in gallery Manufacturing output is expected to fall sharply in the three months to March Earlier this month, leading British businessman James Reed, chair of the recruitment giant Reed, warned the Budget has “spooked business” and suggested a recession could be “around the corner”. “Unlocking this cash flow will turn around sentiment and put rocket boosters on activity and local growth.” open image in gallery The Bank of England held interest rates at 4.75 per cent last week as it cautioned over ‘heightened uncertainty in the economy’ Shadow business secretary Andrew Griffith said: “Since taking office, the chancellor has made this country a hostile climate for aspiration, for investment and for growth.