Britain’s economy is stagnating, new figures have shown amid warnings that tax rises in Rachel Reeves’s budget are damaging business confidence.
A major survey of businesses found that private sector activity fell to a 13-month low in November as companies cut back on hiring and investment.
Economists said that businesses had given a “thumbs down” to Reeves’s budget, particularly her decision to increase employers’ national insurance to raise £25 billion to balance the books and fund public spending.
Some of Britain’s biggest retailers have warned that the increase in national insurance will lead to job cuts, price rises and shop closures. Official forecasts suggest that the tax rises will stymie economic growth over the next five years.
After the release of the new economic