6 days ago
Tax hikes & red tape choke private sector growth to just 0.1% as economists blame Labour's Budget
New orders dropped, exports dipped, and business confidence remained 'subdued', a new survey has found
FLATLINING Tax hikes & red tape choke private sector growth to just 0.1% as economists blame Labour's Budget
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TAX hikes and red tape choked private sector growth to just 0.1 per cent last quarter, a top business tracker has warned.
Bosses blamed Labour's Budget for rising costs, falling orders and job cuts as private sector momentum ground to a halt.
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Shadow Business Secretary Andrew Griffith blasted Labour's 'anti-business agenda' for 'dragging Britain backwards'
Credit: Alamy
S&P Global, which compiles the closely watched PMI business survey, said the economy is 'struggling to expand' with 'risks tilted to the downside'.
Its latest report showed output growth in July dropped to a two-month low - with firms reducing staff at the fastest pace since February.
S&P economist Chris Williamson said: "The sluggish output growth reported in July reflected headwinds of deteriorating order books, subdued business confidence and rising costs."
He added these pressures were 'widely linked to the ongoing impact of the policy changes announced in last autumn's Budget'.
Shadow Business Secretary Andrew Griffith blasted Labour's "anti-business agenda" for "dragging Britain backwards".
He said: "Growth is stalling, jobs are being axed, prices are rising even faster, and orders are drying up, which will inevitably lead to further tax rises in the autumn.
'This stalling is no coincidence.
"Labour hiked taxes through the roof, tied industry in red tape, and declared open war on the very people who create jobs and wealth in this country."
Companies across services and manufacturing blamed weak demand, soaring wage bills and rising National Insurance costs.
New orders dropped, exports dipped, and business confidence remained 'subdued', the survey found.
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Manufacturers were hit by US tariffs and global uncertainty, while service firms reported the sharpest fall in domestic bookings since April.
Some were forced to hike prices to offset rising costs for food, fuel and transport.
It marked the tenth month in a row that firms cut staff - with job losses accelerating.
The PMI Composite Index slipped to 51.0 in July, down from 52.0 the month before and barely above the no-growth line of 50.
