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Scottish Sun
5 days ago
- Business
- Scottish Sun
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 Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) 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. Sign up for Scottish Sun newsletter Sign up 2 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. Top 5 takeaways from Spending review 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.
The Sun
5 days ago
- Business
- The Sun
Tax hikes & red tape choke private sector growth to just 0.1% as economists blame Labour's Budget
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. 2 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. Top 5 takeaways from Spending review 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.
South Wales Guardian
5 days ago
- Business
- South Wales Guardian
Growth slows across UK private sector as job cuts accelerate
The S&P Global flash UK composite purchasing managers' index (PMI) reported a reading of 51 in July, sliding from a nine-month high of 52 reported in June. The flash figures are based on preliminary data. Any score above 50.0 indicates that activity is growing while any score below means it is contracting. The figures therefore pointed towards continued growth but at a slower rate. It was also weaker than expected by economists, who had predicted a reading of 51.8 for the month. Chris Williamson, chief business economist at S&P Global Market Intelligence, said: The flash UK PMI survey for July shows the economy struggling to expand as we move into the second half of the year. 'The sluggish output growth reported in July reflected headwinds of deteriorating order books, subdued business confidence and rising costs, all of which were widely linked to the ongoing impact of the policy changes announced in last autumn's budget and the broader destabilising effect of geopolitical uncertainty.' The data showed that growth was driven by the service sector in July, with firms highlighting an 'uptick' in consumer spending. Nevertheless, service businesses said they still faced headwinds linked to 'fragile domestic economic conditions' and wider uncertainty. Meanwhile, manufacturing production stabilised during the month after eight consecutive months of decline. Goods producers however said they were impacted by 'challenging business conditions', particularly in major export markets due to the continued fallout of the US tariff changes. Surveyed firms reported a drop in overall new work from the private sector, slipping to its weakest level for three months. Lower levels of new work contributed to another drop in employment, with the survey showing the fastest rate of 'job shedding' since February, with job cuts across the manufacturing and service sectors. Companies cited that higher labour costs, following rises in national insurance contributions and the minimum wage, led to a number of workforce restructurings. Mr Williamson said: 'Particularly worrying is the sustained impact of the budget measures on employment. 'Higher staffing costs have exacerbated firms' existing concerns over payroll numbers in the current environment of weak demand, resulting in another month of sharply reduced headcounts in July.'
Fashion Network
5 days ago
- Business
- Fashion Network
UK businesses struggle to grow as BoE rate decision approaches
British business activity across sectors grew only weakly in July and employers cut jobs at the fastest pace in five months, according to a survey that is likely to add to speculation about a Bank of England interest rate cut next month. The S&P Global UK Composite Purchasing Managers' Index (PMI), published on Thursday, slowed to 51.0 points from 52.0 in June, not far above the 50.0 level that separates growth from contraction. A Reuters poll had forecast a smaller fall to 51.8. The survey's employment gauge dropped to 45.1, its lowest since February, with businesses in part blaming the decision by British finance minister Rachel Reeves to make them pay more in social security contributions for their staff from April. "Particularly worrying is the sustained impact of the budget measures on employment," Chris Williamson, chief business economist at S&P Global Market Intelligence, said. "Higher staffing costs have exacerbated firms' existing concerns over payroll numbers in the current environment of weak demand, resulting in another month of sharply reduced headcounts in July." Worries about weak demand were also weighing on hiring decisions, S&P Global said. The BoE is expected to cut interest rates for the fifth time in 12 months on August 7 as it focuses on signs of a slowdown in the jobs market, even as inflation remains above the central bank's 2% target and rose to 3.6% in June. Williamson said Thursday's survey suggested Britain's economy was growing at a quarterly pace of just 0.1% with a risk that it could prove weaker. However, the PMI underscored the BoE's dilemma with growth in prices charged by firms speeding up for the first time since April as suppliers sought to offset some of the tax increase and higher wage bills.
North Wales Chronicle
5 days ago
- Business
- North Wales Chronicle
Growth slows across UK private sector as job cuts accelerate
The S&P Global flash UK composite purchasing managers' index (PMI) reported a reading of 51 in July, sliding from a nine-month high of 52 reported in June. The flash figures are based on preliminary data. Any score above 50.0 indicates that activity is growing while any score below means it is contracting. The figures therefore pointed towards continued growth but at a slower rate. It was also weaker than expected by economists, who had predicted a reading of 51.8 for the month. Chris Williamson, chief business economist at S&P Global Market Intelligence, said: The flash UK PMI survey for July shows the economy struggling to expand as we move into the second half of the year. 'The sluggish output growth reported in July reflected headwinds of deteriorating order books, subdued business confidence and rising costs, all of which were widely linked to the ongoing impact of the policy changes announced in last autumn's budget and the broader destabilising effect of geopolitical uncertainty.' The data showed that growth was driven by the service sector in July, with firms highlighting an 'uptick' in consumer spending. Nevertheless, service businesses said they still faced headwinds linked to 'fragile domestic economic conditions' and wider uncertainty. Meanwhile, manufacturing production stabilised during the month after eight consecutive months of decline. Goods producers however said they were impacted by 'challenging business conditions', particularly in major export markets due to the continued fallout of the US tariff changes. Surveyed firms reported a drop in overall new work from the private sector, slipping to its weakest level for three months. Lower levels of new work contributed to another drop in employment, with the survey showing the fastest rate of 'job shedding' since February, with job cuts across the manufacturing and service sectors. Companies cited that higher labour costs, following rises in national insurance contributions and the minimum wage, led to a number of workforce restructurings. Mr Williamson said: 'Particularly worrying is the sustained impact of the budget measures on employment. 'Higher staffing costs have exacerbated firms' existing concerns over payroll numbers in the current environment of weak demand, resulting in another month of sharply reduced headcounts in July.'
