Rachel Reeves picture from shoulders up (Image: Getty)
is facing a fresh nightmare over the next few months as have said the faces a “significant fall” in trading.
The Chancellor has been criticised for her measures, which critics have warned will make things harder for firms.
These include increasing employer contributions to 15% on salaries above £5,000 from April. This is an increase from 13.8% on salaries above £9,100.
In addition, it was announced that the basic rate of capital gains on profits from selling shares would be increased from 10% to 18%, with the higher rate rising from 20% to 24%.
Now, the Confederation for British Industry (CBI) has warned that there is “widespread” pessimism as research found that a net 22% of private sector companies expect their output to decline between now and April.
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The Chancellor has said she wants to spark growth in the UK (Image: Getty)
“After a grim lead-up to Christmas, the new year hasn’t brought any sense of renewal, with businesses still expecting a significant fall in activity,” Alpesh Paleja, interim deputy chief economist at the CBI, told .
“Anecdotes suggest that companies are being hit by lacklustre demand and caution among consumers, while also continuing to adjust to measures announced in the Budget.”
He has gone on to say that there is an “urgent need” to get momentum back into the economy.
He said: “With forecasts of underwhelming growth this year and less headroom for business investment, the way forward lies in the Government and firms working together to deliver on their growth plan to restore confidence and get the economy firing on all cylinders.”
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Reeves has been criticised by businesspeople (Image: Getty)
The Office for National Statistics (ONS) reported on January 16 that the UK’s production output fell by 0.4% in November 2024, following an unrevised fall of 0.6% in October 2024.
Production fell by 0.7% in the three months to November 2024, driven by a decline in manufacturing.
Monthly real gross domestic product (GDP) was estimated to have grown by 0.1% in November 2024, largely because of a growth in services. This was following an unrevised fall of 0.1% in October 2024.
Real GDP is estimated to have shown no growth in the three months to November 2024, the ONS added, compared with the three months to August 2024.
Stats also indicated that monthly services output grew by 0.1% in November 2024, after falling by 0.1% in October 2024, but showed no growth in the three months to November 2024.
Construction output, meanwhile, grew by 0.4% in November 2024, following a fall of 0.3% in October 2024. Construction also grew by 0.2% in the three months to November 2024.