Tax & Spend
UK Business Activity Set to Shrink in Wake of Budget, CBI Says
- Budget blamed as activity declines for first time in two years
- Companies warn of job cuts as hiring plans weakest since Covid
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Business activity in the UK is on course to shrink for the first time in more than two years as companies cut jobs and rein in investment following the budget, according to the Confederation of British Industry’s monthly growth indicator.
The employer group’s survey of member firms found that the budget measures announced in October, including a £26 billion ($33 billion) increase to payroll tax, “has hit sentiment across the private sector,” compounding the uncertainty caused by the three-month wait for the budget following Labour’s landslide victory in the July 4 election.