Investment firms have warned that prospects for economic growth under the current Government are ‘very gloomy’ after the Budget.
Figures from industry group Make UK show that the confidence of manufacturers has fallen since the second quarter of 2020 when the UK economy came to a halt due to the first Covid-19 lockdown.
Salaries for the sector were expected to rise ‘significantly’ in the Treasury, which included an increase in National Insurance contributions for employers and the minimum wage.
UK manufacturing is expected to contract by 0.2 percent this year, down from the 0.5 percent forecast in September. It also revised up its forecasts for 2025, expecting the sector to grow by just 0.7 percent.
Worry: Figures from industry group Make UK show that confidence in manufacturers has fallen at its sharpest rate since the second quarter of 2020
According to Fhaheen Khan, UK’s leading economist, ‘Manufacturers are now facing a cost crisis’.
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