CBI Warns of Economic Slowdown: Tax Increases Harming Jobs and GrowthThe Confederation of British Industry (CBI) is expressing concern over recent tax increases, stating theyre negatively impacting jobs and economic growth. The CBI also criticizes the current government for not making bold choices to stimulate the economy. The CBI predicts a continued slow period for the UK, citing ongoing weakness in the private sector.While the CBI slightly upgraded its GDP growth forecasts for the UK, this improvement is primarily due to a short-term increase in public sector spending, which will be funded by tax hikes starting in 2028. Household spending is down due to stagnant living standards, and businesses are hesitant to invest due to weak demand, high costs, and uncertainty both domestically and internationally.The CBIs chief economist, Louise Hellem, noted that the economic momentum seen earlier in 2025 has faded throughout the year. She acknowledged a temporary boost from some budget announcements but emphasized the lack of a lasting push for business investment and growth, which is concerning given the governments stated priority for economic expansion.This report follows another warning from the British Chambers of Commerce, indicating that the UK economy is likely to remain in a low gear. Todays GDP figures for October are expected to show only a tiny 0.1% growth, further highlighting the sluggish economic conditions.

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