Ailbhe Rea: Budget Gets a Thumbs Down from Business

How has Rachel Reeves’ budget impacted on the real economy? Today we had a swathe of economic data to give the first indicators — and it’s not looking good. Growth in the private sector looks like it’s falling, and the business verdict is in: it’s “a clear thumbs down.”

The Purchasing Managers’ Index (PMI) by S&P Global fell below 50 in November, which suggests the private sector economy is now contracting after previously solid but unspectacular growth. The dip in confidence comes after businesses shouldered the bulk of Reeves’ £40 billion’s worth of tax increases — and the survey behind the index is squarely placing the blame on her policies.