UK Businesses Brace for Economic Downturn with Job Cuts and Price Hikes

CBI survey finds private sector firms expect declining activity as tax hikes and weak demand strain budgets.

The Confederation of British Industry (CBI) reports that 22% of surveyed firms anticipate a fall in output over the next three months, continuing a trend of stagnation since mid-2022.
Businesses are preparing to cut jobs, move operations overseas, and reduce investment to counteract rising costs, including a £25 billion increase in employer national insurance contributions.
Many companies plan to raise prices to manage higher expenses, while wage growth remains under pressure as employers scale back pay awards.
Consumer demand remains subdued, with retail and manufacturing sectors particularly pessimistic about future business volumes.
Economists and business leaders are urging the government to implement growth-focused measures to restore confidence and address the ongoing economic challenges.