CBI Downgrades Growth Forecast and Blames Reeves Tax Raid – Guido Fawkes

CBI Downgrades Growth Forecast and Blames Reeves Tax Raid

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Another headache for Rachel Reeves as the Confederation of British Industry hacks down its UK growth forecast to just 1.2% this year – a hefty drop from its earlier estimate of 1.6%. Next year is looking even worse: 2026 slashed from 1.5% to a limp 1%…

Business investment is set to slow in Q3 and actually drop at the start of 2026 – thanks again to Reeves’ cocktail of a national insurance hike and the minimum wage rise. Chief economist at the business group Louise Hellem said:

“Those decisions at the autumn Budget to increase taxes on National Insurance contributions alongside the increases in the national living wage have had a material impact on business decisions. They have made costs of being in the UK increase and they have meant many businesses have had to make tough choices, particularly on hiring decisions – they are pausing those.”

The report also pointed to uncertainty over Trump’s tariffs. Starmer being snubbed again by failing to secure 0% tariffs on steel won’t help…

A big blow to Reeves, who’s been flogging the ‘G’ word as a means to fund Labour’s spending splurge. Tax rises inbound…