Rachel Reeves is facing huge amounts of criticism of her policies as the UK’s economy stalls.
The Chancellor is due to set out her Spring Statement on March 26, which is expected to focus on the state of the public finances, economic growth, and household pressures.
On October 30, Ms Reeves announced controversial measures in her Budget, which, critics suggest, have made things harder for businesses and negatively affected investment.
These included increasing the basic rate capital gains tax on profits from selling shares from 10% to 18%, with the higher rate rising from 20% to 24%.
Further, companies are to pay National Insurance (NI) at 15% on salaries above £5,000 from April. This is an from 13.8% on salaries above £9,100.
Businesspeople have denounced this move, claiming they will have to resort to hiring fewer people as a result.
Earlier this month, it was reported that a survey by deVere Group, an independent financial advisory and asset management organisation, had found that 42% of those with financial assets in the UK or ties to the country are actively now seeking to transfer their wealth out of Britain.
Instead, they are opting for “more tax-friendly” jurisdictions.
A damning new report by the Bank of England has exposed the impact of the Chancellor’s decision to increase NI for employers, with a majority of firms set to increase prices and employ fewer workers.
Four in ten businesses also said they expect to pay lower wages as a result of the increase, part of a £36 billion package of tax rises. The Bank’s findings were based on a survey of Chief Financial Officers in businesses nationwide.
The Office for National Statistics (ONS) reports that monthly real gross domestic product (GDP) is estimated to have fallen by 0.1% in October 2024, largely because of a decline in production output. This follows a fall of 0.1% in September 2024.
In addition, experts say monthly services output showed no growth in October 2024 after also showing no growth in September 2024, but grew by 0.1% in the three months to October 2024.
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Production output fell by 0.6% in October 2024, because of falls in manufacturing, and mining and quarrying output, following a fall of 0.5% in September 2024. Production output fell by 0.3% in the three months to October 2024.
Construction output fell by 0.4% in October 2024, following a growth of 0.1% in September 2024, but grew by 0.4% in the three months to October 2024.
Real GDP is estimated to have grown by 0.1% in the three months to October 2024, compared with the three months to July 2024, with growth in the services and construction sectors in this period.
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