Reeves’ Tax Raid Blamed for 19-Month Low in Manufacturing Output
After government borrowing surged above forecasts more bad news has landed on Rachel Reeves’ desk this morning. While the Chancellor rubs shoulders at the G7 in Banff…
The latest S&P Global Services PMI flash survey shows UK manufacturing output has seen the fastest running downturn since October 2023, while private sector output decreased for a second month in a row in May. The finger again pointed at Reeves’ ‘Awful April’ tax hikes…
S&P Global’s Chris Williamson said:
“Sentiment about prospects in the year ahead is still subdued. Job cutting consequently remains worryingly aggressive, especially in manufacturing, as concerns about weak demand have been exacerbated by the rise in staff costs linked to the National Insurance and minimum wage changes that came into effect in April.”
Meanwhile, economists are warning that further tax hikes are “inevitable” after government borrowing rose to £20.2 billion last month. The worst is yet to come…
