Reeves’ endless claims of delivering growth would be a little more convincing if she hadn’t just delivered the most business-bashing, anti-growth budget in recent history. EY’s latest growth forecast pours more cold water on her lofty promises, predicting UK GDP will grow a meagre 1% in 2025—down from 1.5% expected back in October, pre-budget…
Much of the blame is being placed squarely on the Chancellor’s record tax-raising budget, with EY warning that the hike in employer National Insurance contributions and the minimum wage will choke investment and push unemployment up to 4.6%. As they put it, “A weaker-than-expected finish to 2024 has left the UK economy with a much steeper climb to achieve any growth this year,” with GDP struggling to break 1% in 2025. Business confidence has nosedived since the budget, with investment growth slashed to 2% for 2025—down from 3% last year—and set to fall further to 1.8% by 2026. A pretty grim outlook for a government that insists it’s all about growth…
Speaking at his speech on how to achieve “progressive capitalism” Wes Streeting fired a dig and Andy Burnham:
“Bond markets are not bond villains and fiscal rules matter.”