Uncertainty due to Labour’s civil war and high costs on business are crushing growth and jobs, bosses have warned.
Yet the bloated public sector continues to spend and hire more – a divergence that is ‘not sustainable’, according to the CBI’s latest forecast.
It predicts unemployment will rise by 200,000 to 5.5 per cent this year as high costs – which include tax and minimum wage rises – result in private sector hiring seizing up.
Uncertainty over the Labour leadership is putting a freeze on firms' appetite to invest
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