UK firms expecting slowdown

UK firms are expecting to reduce both output and hiring this quarter, according to a survey conducted by the Confederation of British Industry (CBI).

UK firms are expecting to reduce both output and hiring this quarter, according to a survey conducted by the Confederation of British Industry (CBI).

Activity has been flat or falling since the middle of 2022, reflecting a prolonged period of stagnation.

The survey suggested that sentiment among businesses dipped in the aftermath of the Government's Autumn Budget.

Some businesses said that the tax rises had resulted in them reviewing their budgets at short notice and taking steps to mitigate higher costs.

Plans include raising prices to pass on additional costs to clients, trimming investment plans and cutting staff to reduce business expenses.

Alpesh Paleja, Interim Deputy Chief Economist at the CBI, said:

'After a grim lead-up to Christmas, the New Year hasn't brought any sense of renewal, with businesses still expecting a significant fall in activity. Alongside plans to cut staff and raise prices further, this risks an increasingly awkward trade-off for policymakers.

'Anecdotes suggest that companies are being hit by lacklustre demand and caution among consumers, while also continuing to adjust to measures announced in the Budget.

'There is an urgent need to get momentum back into the economy. The government can help shift the UK's economic narrative with more determined focus on measures that could drive growth.'

Internet link: CBI

Copyright

© 2025 Sheen Stickland. All rights reserved.

powered by totalSOLUTION

We use cookies on this website, you can find more information about cookies here.
Quick links

Contact us | Site map | Accessibility | Disclaimer | Privacy | Help |

Addresses:
Sheen Stickland, 2 Oriel Court, Omega Park, Alton, Hampshire GU34 2YT
Sheen Stickland, The Engine House, 77 Station Road, Petersfield, Hampshire GU32 3FQ

Sheen Stickland is the trading name of Sheen Stickland LLP and Sheen Stickland Audit Ltd

Sheen Stickland LLP is a Limited Liability Partnership Registered in England. Number OC 313253 Reg Off: 2 Oriel Court, Omega Park, Alton, Hampshire, GU34 2YT

Partners: David Sanders, Philip Sharpe, Paula Joyce, Sticklands Ltd

Not all the partners are members of Sheen Stickland LLP. A list of members of Sheen Stickland LLP is available from the Registered Office

Audit & related services are provided by Sheen Stickland Audit Ltd Registered in England. Number 02223334 Reg Off: 2 Oriel Court, Omega Park, Alton, Hampshire, GU34 2YT

Sheen Stickland Audit Ltd is registered to carry on audit work in the UK & Ireland and Sheen Stickland LLP is regulated for a range of investment business activities by the Institute of Chartered Accountants in England & Wales