Economy set to grow at slower pace 'because of Reeves'

THE Chancellor's Budget has stifled economic growth and dampened business activity, a major report warns today.

- Martyn Brown

Rachel Reeves' October tax raid means GDP forecasts are lower than they were a year ago.

The influential Centre for Economics and Business Research expects it will grow by 1.3% in 2025 and 1.4% in 2026 - lower than the 1.9% and 1.6% predicted at the same time last year. The report says: "These downward revisions largely reflect the expected responses to policy changes announced at the new Government's inaugural Budget, including changes to capital gains tax and employers' national insurance contributions.