Labor must 'urgently' stimulate the economy, warns a leading business group today, because new data demonstrated that the start of a new year could not have been increased at besieged companies.
The Confederation of the British Industry (CBI) said that companies predicted that economic activity would suffer a 'significant fall' in the next three months, because planned price increases and job reductions after the budget of Rachel Reeves in October weighed on companies throughout the country .
The research among 990 companies warned that pessimism about the health of the economy was' widespread 'and the gloomy prospects of the government also had the brakes on consumers' confidence, where people were less likely to splash their money in the midst of The fear of a decline.
It will offer little comfort for companies after a depressing festive period in which many High Street stores struggled in the so-called 'Golden Quarter' while shoppers stayed away and reduce expenditure.
“After a grim run-up to Christmas, the new year has not brought any sense of renewal, whereby companies still expect a significant decrease in activity,” said CBI place-replacement chief economist Alpesh Paleja.
He added: 'There is an urgent need to get Momentum back into the economy. The government can help shift the economic story of the UK with more determined focus on measures that can stimulate growth. '
The CBI called on the government to stimulate the growth of the British outlook by reforming the hated business rates system, a levy that is charged on the value of commercial property such as stores.
The Confederation of the British Industry (CBI) said that companies predicted that economic activity would suffer a 'significant fall' in the coming three months (depicted: CEO Rain Newton-Smith)
Chancellor of the treasury Rachel Reeves appears on BBC's Sunday with Laura Kuensberg
The gloomy CBI prediction followed the news that more High Street Retailers were planning to close branches while they had overhauled their companies in the midst of increasing costs and the tax plans of the government (shown: closed stores in barking)
The Chancellor has announced that the rates lighting will be reduced from 75 percent to 40 percent from April, so that many companies are confronted with a huge increase in their accounts.
In addition to a planned increase in the national insurance policies of employers, as well as an inflation bust rise in the minimum wage.
The gloomy CBI prediction followed the news that more High Street Retailers were planning to close branches while they had overhauled their companies in the midst of increasing costs and the tax plans of the government.
On Saturday, news agent WHSmith said that after more than two centuries in the British High Street it wanted to sell its chain of more than 520 stores.
It followed an announcement on Friday that the family behind Kookberei Retailer Lakeland had offered the company for sale in the middle of the printing pressure pressure as a result of the budget.
The growing criticism of dealing with the government of the economy occurs on a crucial speech by Reeves, expected on Wednesday, where she is expected to outline plans to stimulate the investments in the UK.
Part of the strategy includes legislation with which the government can use an estimated £ 60 billion in surplus of large business pension schemes.
Earlier this month a meeting between Treasury officials and representatives of the 100 largest companies mentioned on the London Stock Exchange was held to discuss the idea, Sky News reported.
