Hard-working Brits issued dire pay warning by bosses as Rachel Reeves puts ‘handbrake on economy’
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WORKERS face puny pay rises as bosses shut their chequebooks following Labour’s Budget, economists warned today amid sluggish growth figures. Chancellor Rachel Reeves was accused of putting a “handbrake on the economy” by hiking taxes on employers.
![[Chancellor Rachel Reeves speaking at a press conference.]](https://www.thesun.co.uk/wp-content/uploads/2025/01/2024-maidstone-england-chancellor-exchequer-956233074.jpg?strip=all&w=960)
GDP crept up 0.1 per cent in November, marking an improvement on the 0.1 per cent contraction in October. But Ms Reeves will be hoping for much higher upticks to succeed in her flagship mission of driving the sort of growth needed to offset any more tax rises or borrowing.
Following this morning’s figures, the Confederation of British Industry warned firms were reacting to the Budget by keeping money tight. Economist Ben Jones said: “In the wake of the Autumn Budget a mood of caution seems to have settled over UK businesses.
“Many firms are entering 2025 with a focus on reducing operational expenditure, which is likely to weigh on pay, hiring and investment in the months ahead.”. Ms Reeves - already under pressure over market turmoil - remained defiant this morning despite the spluttering growth figures.
She said: “I am determined to go further and faster to kickstart economic growth, which is the number one priority in our Plan for Change. “That means generating investment, driving reform and a relentless commitment to root out waste in public spending, and today I will be pressing regulators on what more they can do to deliver growth.”.
