The Chancellor has been told the UK is already in a recession (Image: Getty)
The UK is already in a recession due to ‘ “disastrous” Budget, Gail’s Bakery chairman Luke Johnson has claimed. The businessman says the mood among entrepreneurs is the most “depressing” he has seen in 40 years, while the Chancellor scrambles for economic growth.
“Nothing has gone right and almost everything they have done has gone wrong,” Mr Johnson told when asked about Labour’s first 6 months.
Speaking about the Government, he said: “I think they are a disaster. I accept they were handed a pretty awful set of circumstances.
“Post-war high levels of tax and debt and much higher than we have experienced before.
“There were many of the elements that could lead to a recession. I’m now convinced there will be a recession in 2025, we’ve probably already entered one.”
Prime Minister Keir Starmer and Chancellor Rachel Reeves met with business leaders today (Image: Getty)
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Labour’s first few months in office have been turbulent, not least after a shocking rise in bond yields to 4.82% pushed up the cost of Government borrowing. Meanwhile, nearly 11,000 millionaires fled the UK to overseas countries to avoid the Chancellor’s tax rises.
Mr Johnson added: “The mood amongst the entrepreneurs and investors I speak about this country with is more depressing than I can remember in 40 years of business.”
The chairman of the bakery chain acknowledged Sir ’s warning of Britons facing hardship before the economy improves, agreeing that the predicted recession will only last a maximum of 18 months.
However, Mr Johnson draws a comparison between the impact the arrival of the new US president and the UK’s prime minister have had on their respective nations.
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He says: “Unemployment is rising and investment in this country is faltering. The sentiment, which is all important, is falling. There is this stark comparison with America where it’s utterly clear the new administration is full of optimism and confidence.
“They will unquestionably boost investment and employment and cheer on entrepreneurs and enterprises.
“Meanwhile, this Government has the Employment Rights Bill, 150 pages of red tape placed on businesses, that’s fine for big companies but small, medium sized businesses that don’t necessarily have large HR departments, 150 pages of extra regulation is not going to encourage them to create jobs.
“We are going to see a decline in work, we’ll see a decline in taxes and this Government will not meet its expectations for growth.”
Express.co.uk has contacted the Treasury for comment.