British economy heading for ‘worst of all worlds’, business leaders warn over Labour Budget

Businesses say they are “battening down the hatches” in fears over economic gloom in the new year as they blame the impact of Rachel Reeves’s Budget.

A major survey by the Confederation of British Industry (CBI) found firms are expecting to reduce both output and hiring, adding to the wider picture of a jittery economy in the second half of the year.