Rachel Reeves picture from shoulders up (Image: Getty)
Rachel Reeves is facing a fresh nightmare over the next few months as business leaders have said the UK faces a "significant fall" in trading.
The Chancellor has been criticised for her Budget measures, which critics have warned will make things harder for firms.
by Taboola by Taboola
Sponsored Link Sponsored Link
Promoted Links Promoted Links
Legacy Planning: Just 10 minutes To StartPlanYourLegacy.gov.sg Learn More
Undo
These include increasing employer National Insurance contributions to 15% on salaries above ￡5,000 from April. This is an increase from 13.8% on salaries above ￡9,100.
In addition, it was announced that the basic rate of capital gains tax on profits from selling shares would be increased from 10% to 18%, with the higher rate rising from 20% to 24%.
Now, the Confederation for British Industry (CBI) has warned that there is “widespread” pessimism as research found that a net 22% of private sector companies expect their output to decline between now and April.
Sponsored
nWealth Sign Up
How To Earn $3,000+ While You Sleep (Try This Today)
Undo
by Taboola by Taboola
READ MORE: Dyson boss brands Rachel Reeves 'vindictive' for 'destroying' family businesses
The Chancellor has said she wants to spark growth in the UK (Image: Getty)
“After a grim lead-up to Christmas, the new year hasn’t brought any sense of renewal, with businesses still expecting a significant fall in activity,” Alpesh Paleja, interim deputy chief economist at the CBI, told The Times.
“Anecdotes suggest that companies are being hit by lacklustre demand and caution among consumers, while also continuing to adjust to measures announced in the Budget.”
He has gone on to say that there is an "urgent need" to get momentum back into the economy.
He said: "With forecasts of underwhelming growth this year and less headroom for business investment, the way forward lies in the Government and firms working together to deliver on their growth plan to restore confidence and get the economy firing on all cylinders.”
READ MORE:
The cathedrals facing ruin over Rachel Reeves National Insurance hike [REPORT]
Labour chaos as Rachel Reeves ‘warns Khan and Miliband not to get in her way' [LATEST]
Rachel Reeves accused of Brexit betrayal with 'clueless' EU customs plan [LATEST]
Trending
SUBSCRIBE Invalid email
We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. Read our Privacy Policy
Reeves has been criticised by businesspeople (Image: Getty)
The Office for National Statistics (ONS) reported on January 16 that the UK's production output fell by 0.4% in November 2024, following an unrevised fall of 0.6% in October 2024.
Production fell by 0.7% in the three months to November 2024, driven by a decline in manufacturing.
Monthly real gross domestic product (GDP) was estimated to have grown by 0.1% in November 2024, largely because of a growth in services. This was following an unrevised fall of 0.1% in October 2024.
DON'T MISS
Powered by
Rachel Reeves is throttling businesses with red tape
25 Comments
Rachel Reeves leading economy to 'doomed loop' as borrowing soars in fresh blow
48 Comments
Russian economy meltdown as firms face mass bankruptcies and consumer borrowing costs soar
72 Comments
Dyson boss brands Rachel Reeves 'vindictive' for 'destroying' family businesses
171 Comments
Rachel Reeves announces Oxford-Cambridge mega-city in desperate dash for growth
60 Comments
Russian economy meltdown with 'moment of truth' and 'major bankruptcies' looming
68 Comments
Furious Rachel Reeves row explodes on LBC as Labour MP skewered for 'putting head in sand'
46 Comments
UK hasn't scratched surface of Brexit in five years - one way this can be solved
16 Comments
Rachel Reeves triggers uprising as Labour left say she isn't taxing us hard enough!
38 Comments
Rachel Reeves has a hidden ￡1.1bn tax increase which we will all pay
94 Comments
As Rachel Reeves unleashes tax hell here's 17 ways you can fight back
2 Comments
Bank of England may soon 'deliver six interest rate cuts'
6 Comments
Six end-of-tax year strategies to avoid 'sneaky traps' and cut your bill
Comments
Rachel Reeves humiliated ahead of major speech as UK growth forecast slashed
116 Comments
Recession fears grow with pressure on Bank of England to cut rates
8 Comments
Fresh misery for Rachel Reeves as record rise of UK businesses in financial distress
217 Comments
Rachel Reeeves humiliated as job losses surge after Budget catastrophe
148 Comments
Liz Kendall warning as 'too sick to work' benefits bill could reach ￡100billion
162 Comments
Reeves issued recession warning as UK entrepreneurs' mood most "depressing" in 40 years
9 Comments
Major tourist attraction to slash jobs after ‘flat' year for tourism
12 Comments
Rachel Reeves is throttling businesses with red tape
25 Comments
Rachel Reeves leading economy to 'doomed loop' as borrowing soars in fresh blow
48 Comments
Russian economy meltdown as firms face mass bankruptcies and consumer borrowing costs soar
72 Comments
Dyson boss brands Rachel Reeves 'vindictive' for 'destroying' family businesses
171 Comments
Rachel Reeves announces Oxford-Cambridge mega-city in desperate dash for growth
60 Comments
Russian economy meltdown with 'moment of truth' and 'major bankruptcies' looming
68 Comments
Furious Rachel Reeves row explodes on LBC as Labour MP skewered for 'putting head in sand'
46 Comments
UK hasn't scratched surface of Brexit in five years - one way this can be solved
16 Comments
Rachel Reeves triggers uprising as Labour left say she isn't taxing us hard enough!
38 Comments
Rachel Reeves has a hidden ￡1.1bn tax increase which we will all pay
94 Comments
As Rachel Reeves unleashes tax hell here's 17 ways you can fight back
2 Comments
Bank of England may soon 'deliver six interest rate cuts'
6 Comments
Six end-of-tax year strategies to avoid 'sneaky traps' and cut your bill
Comments
Rachel Reeves humiliated ahead of major speech as UK growth forecast slashed
116 Comments
Recession fears grow with pressure on Bank of England to cut rates
8 Comments
Fresh misery for Rachel Reeves as record rise of UK businesses in financial distress
217 Comments
Rachel Reeeves humiliated as job losses surge after Budget catastrophe
148 Comments
Liz Kendall warning as 'too sick to work' benefits bill could reach ￡100billion
162 Comments
Reeves issued recession warning as UK entrepreneurs' mood most "depressing" in 40 years
9 Comments
Major tourist attraction to slash jobs after ‘flat' year for tourism
12 Comments
Rachel Reeves is throttling businesses with red tape
25 Comments
Rachel Reeves leading economy to 'doomed loop' as borrowing soars in fresh blow
48 Comments
Russian economy meltdown as firms face mass bankruptcies and consumer borrowing costs soar
72 Comments
Dyson boss brands Rachel Reeves 'vindictive' for 'destroying' family businesses
171 Comments
Rachel Reeves announces Oxford-Cambridge mega-city in desperate dash for growth
60 Comments
Russian economy meltdown with 'moment of truth' and 'major bankruptcies' looming
68 Comments
Furious Rachel Reeves row explodes on LBC as Labour MP skewered for 'putting head in sand'
46 Comments
Real GDP is estimated to have shown no growth in the three months to November 2024, the ONS added, compared with the three months to August 2024.
Stats also indicated that monthly services output grew by 0.1% in November 2024, after falling by 0.1% in October 2024, but showed no growth in the three months to November 2024.
Construction output, meanwhile, grew by 0.4% in November 2024, following a fall of 0.3% in October 2024. Construction also grew by 0.2% in the three months to November 2024.