Rachel Reeves on a visit to China, where she tried to spur growth (Image: Getty)
Labour “don’t know what they are doing” following a stall in consumer confidence, the Tories have said.
Consumer confidence remained largely unchanged in the final three months of 2024, with a marginal -0.2 percentage point drop.
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Shadow Business Secretary Andrew Griffith said: "This is the latest in a long line of depressing business confidence figures. These are the consequences of continually raising taxes.
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"Labour don’t know what they are doing, which is why their terrible National Insurance jobs tax and borrowing has sent borrowing costs skyrocketing.
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"We need the Government to be better. Under new leadership, the Conservatives will support business because we know it’s businesses that create good, well-paid jobs and grow our economy.”
It comes as Ms Reeves spends the week in Davos to woo businesspeople to invest in the UK’s flatlining economy.
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The Chancellor will be at the World Economic Forum at Davos to persuade chief executives “that the UK is on the up”, said the Treasury.
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Rachel Reeves sends business confidence 'nose-diving' as firms report record high tax fear
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The Chancellor will attend the meetings at the Swiss mountain resort, which formally kick off on Monday evening, alongside Business Secretary Jonathan Reynolds and investment minister Baroness Gustafsson.
She will be present on Wednesday and Thursday. She is expected to meet cash-rich sovereign wealth funds from the Middle East and US private equity investors to try to woo them to invest in major infrastructure and green energy projects.