By GB News (Politics) | Created at 2024-12-18 16:17:22 | Updated at 2024-12-18 19:15:40
3 hours ago
The Chancellor has been accused of "derailing" Britain's economy through her record tax raid, as fears continue to mount over rising inflation.
Business leaders and the Bank of England have warned that Labour's Autumn Budget will further stoke inflation, which rose from 2.3 per cent to 2.6 per cent in November.
New figures have shown that wage growth accelerated for the first time in over a year in the three months to October, exceeding market expectations.
The data has now heightened concerns surrounding a potential reignition of the inflation crisis.
Since Labour came to power, the economy has contracted for two consecutive months
PA
Jaguar Land Rover has announced that it has planned to halt "significant" investment plans in response to the increase in employer National Insurance contributions.
Murray Paul, JLR's public affairs director, told a Business and Trade Committee hearing that the added costs are forcing the company to "unwind some investment" planned for the next five years.
While specific figures were not disclosed due to public forum constraints, Paul said that it was "a significant sum of money".
In stark contrast to Britain, other major economies are moving towards monetary easing, including the US Federal Reserve, which is expected to lower borrowing costs on Wednesday evening.
Additionally, the European Central Bank has already reduced interest rates and signalled preparations for future cuts.
Traders have reduced their bets on the Bank of England cutting borrowing costs next year.
Andrew Griffith, shadow business secretary, accused Reeves of "throttling Britain's recovery" and making the country an international outlier
PA
Company insolvencies surged by 13 per cent between October and November, reaching 1,966 cases.
The Insolvency Service noted that monthly averages in 2024 have remained similar to 2023, which saw the highest annual number since 1993.
Kate Nicholls, chief executive of UK Hospitality, said the Budget had destroyed optimism in her sector.
"This was the first year that we looked ahead and could see some signs of growth and recovery. We had green shoots. Those have just been dashed, and that hope and optimism have just been dashed by the £3.4biilion pound tax take," she said.
Andrew Griffith, shadow business secretary, accused Reeves of "throttling Britain's recovery" and making the country an international outlier.
"UK growth rates are delinking from other major economies," Griffith said, adding that "Labour's summer of trash-talking the economy and the choices made in the Budget itself... have clobbered confidence and jobs."
