British employers lower economic rise expectations as economy dragged down by taxes

On December 6th, the Confederation of British Industry (CBI) lowered its expectations for economic rise next year, more pessimistic than recent forecasts, due to the impact of the new government’s first budget measures. The CBI stated that the economic rise rate for 2025 is currently expected to be 1.6%, lower than the 1.9% forecasted in June. The rise outlook for this year has been lowered from 1.0% in June to 0.9%. Measures in the autumn budget will increase business costs, and at a time when business profit margins are already under pressure, CBI Chief Economist Louise Hellem said, “Many businesses have told us that these measures are likely to push up prices, affecting their future hiring and investment plans.”