Britain's economy will 'muddle through' this year and next as Rachel Reeves's tax hikes and Donald Trump's tariffs hit jobs and investment, the nation's leading business group says.
The Confederation of British Industry (CBI) has downgraded its forecast for UK growth this year from 1.6 per cent to 1.2 per cent, and from 1.5 per cent to just 1 per cent for 2026.
It marks the latest downbeat verdict on Ms Reeves's performance as Chancellor – and undermines Prime Minister Keir Starmer's claim that Labour has 'fixed the foundations of the economy'.
And the report urged the Government to do more to shift Britain out of 'low gear'.
CBI principal economist Martin Sartorius said recent rises in employer National Insurance contributions and the national living wage 'have likely contributed to the recent deterioration in firms' hiring and investment plans'.
