Blow for Rachel Reeves as business leaders warn she is killing economy | Politics | News
Business leaders accused Chancellor Rachel Reeves of raising prices and giving employers of creating new jobs. The confederation of the British industry made a damn decision in its last economic estimation. He said that the decision to increase the national insurance paid by the companies and increase the minimum wage will result in “higher prices, slower wage growth, softer private sector employment and weaker investment”.
And the coup collapsed the pressure on businesses, causing a slowdown in global trade by US President Donald Trump. Louise Hellem, the Chief economist of the CBI, said: “Our latest economic estimate underlines the difficulties faced by businesses and a wider economy because they are buffed by local and global winds.
“Unpowns to the unpredictable global appearance, increasing employment costs, gloomy sense of business, and suppressed investment intentions, the government is more important than usual to arrange the UK on a path to sustainable growth.
“The expenditure examination pointed out the down payment payment to lead the growth mission to the government priorities with targeted investments that will increase the long -term ceiling of the economy. However, we know that the innovation, investments and jobs required for growth will come from work, not Whitehall.
“GDP began to remain modest in 2026, the government has an important opportunity for the government to ignite the growth agenda in the future industrial strategy. With the increasing cost burden of increasing costs by companies throughout the economy, the industrial strategy helps to direct a developing environment for all businesses.”
The CBI said that the economy started strongly for 2025, but that the growth would be slower than expected because of “measures in the 2024 autumn budget and the uncertainty of global trade”.
This follows the warnings from the Thinking Authority from the Institute of Financial Research, where the chancellor may have to increase taxes on his budget this year.
Exchequer’s Shadow Chancellor Conservative Mel Stide said: “The CBI’s warning is open – higher employment costs related to the Labor Party’s business tax kill growth.
“This follows the warning that any decrease in IFS’s growth forecasts will ‘almost certainly lead to more tax increase’.
“’Spending today, Tomorrow Tax’ Chancellor, Rachel Reeves CBI’ya ‘more borrowing or more tax did not come back’ he said – but now celebrated himself in a corner, and now we know that ‘a secret plan to raise taxes’.
