Keir Starmer has warned that the BRITISH economy is “headed for the worst of all worlds” next year – as GDP stagnates without growth.
The latest blow to Sir Keir Starmer comes in a survey carried out by the Confederation of British Industry.
And a rise in National Insurance contributions is cited as one of the main reasons for grief among business bosses.
Growth expectations have fallen to their lowest level since former prime minister Liz Truss’ disastrous 2022 mini-budget, the survey found.
Business in the service sector is expected to decline, while manufacturing output is also expected to fall sharply between January and March.
It comes after new figures showed the economy stagnated more than first thought in the third quarter of this year due to fears of low growth.
The Office for National Statistics (ONS) said GDP showed no growth between July and September, revised down from an estimated 0.1% rise earlier.
This means that the UK economy has either shown no growth or has contracted since July this year which has hit the government hard.
The latest monthly GDP (Gross Domestic Product) figures revealed that the UK economy unexpectedly contracted by 0.1% in October.
The ONS said there was no growth in the services sector between July and September, while a 0.7 per cent increase in the construction sector was offset by a 0.4 per cent fall in manufacturing.
Meanwhile, it said that initial estimates show that real disposable household income per capita showed no growth in the third quarter.
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This follows growth of 1.4% between April and June.
Alpesh Paleja, of the CBI, said: “There is little festive cheer in our latest research, which suggests the economy is heading for the worst of all worlds.
“Companies are expecting a reduction in production and employment, and expectations of price growth are becoming firmer.
“Companies continue to cite the impact of the measures announced in the Budget, particularly the rise in employers’ NICs, exacerbating already tepid demand.”
It comes after the Office for National Statistics recently revealed that GDP fell by 0.1 per cent in October.
Yesterday, Commons leader Lucy Powell said Britain was “going down the Swanee” when Labor took power in July. But she insisted: “We’re starting to turn that oil tanker around.”
Responding to the CBI inquiry, shadow business secretary Andrew Griffith said: “Rachel Reeves raising taxes and ranting about her economic legacy is destroying businesses and jobs.
“If there is a recession – and that looks increasingly likely – it will be one created in Downing Street.”
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The latest blow to Sir Keir Starmer comes in a survey carried out by the Confederation of British Industry
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Source: HIS Education