The Confederation of British Industry has down-scaled its growth predictions for the UK economy: next year shows a drop to 0‚9% from earlier 1‚0%‚ while 2025 outlook falls to 1‚6% from 1‚9% (which shows significant re-evaluation of market conditions)
The groups chief economist Louise Hellem points to recent budget changes that affect business costs. Companies face higher expenses starting Apr-2024‚ including increased social-security payments and a seven-percent jump in minimum wage rates — these changes might push-up prices and slow down hiring
Different organizations show mixed views on UKs economic future:
- British Chambers of Commerce lifts its 2025 forecast to 1‚3%
- OECD sees growth reaching 1‚7%
- CBI expects 1‚5% growth by 2026
The Bank of England survey shows that many firms plan price hikes and job-cuts due to new policies; however Keir Starmer remains committed to his growth plans. Business investment should improve by 2025 but might slow down afterwards — this relates to employment costs and public investment effects
The forecast suggests interest rates will drop to 3‚5% by late-2026‚ while inflation stays above target till 2027. Employment growth shifts towards self-employed workers‚ with wage increases expected to slow down