UK Economy Sputters as Negativity Builds Ahead of Reeves’ Budget

British businesses recorded barely any growth in the weeks leading up to the Labour government’s Nov. 26 budget, survey data shows, with the fear of large tax hikes taking its toll on the economy.

S&P Global’s purchasing managers’ index dropped sharply to 50.5 in November from 52.2 the previous month, and well below the 51.8 expected by economists. The flash survey was the latest piece of negative data around the UK economy, following news of falling retail sales and ballooning government borrowing earlier on Friday.