Recession Coming27 Jan 2025 09:27
“Fears of a recession are growing as business chiefs warned they will be forced to ramp up job cuts as Rachel Reeves’s tax raid hits growth.
Bosses in the private sector said they expected a “significant fall” in activity over the next three months, according to a survey by the Confederation of British Industry (CBI).
Businesses across all main sectors including manufacturing, services and retail forecast a decline in January, having fallen over the previous three-month period, it said.
Companies are now cutting staff, moving jobs overseas and curbing investment as they battle to cut costs and offset the impact of the Chancellor’s looming tax changes, the CBI warned.
Alpesh Paleja, an economist at the CBI, said: “After a grim lead-up to Christmas, the New Year hasn’t brought any sense of renewal.
“There is an urgent need to get momentum back into the economy. The Government can help shift the UK’s economic narrative with more determined focus on measures that could drive growth.”
The economy is unraveling fast. Nice one Labour 🙄🤔