Manufacturing firms have warned that hopes for an economic boost under the current Government have ‘darkened markedly’ following the Budget.
Figures from industry body Make UK show that confidence among manufacturers had fallen at its sharpest rate since the second quarter of 2020 when the UK economy ground to a halt due to the first Covid-19 lockdown.
Costs for the sector were also expected to see a ‘substantial’ increase as a result of the Budget, which included a hike in National Insurance contributions for employers and minimum wage.
Make UK forecast Britain’s manufacturing industry would shrink by 0.2 per cent this year, down from 0.5 per cent predicted in September. It also trimmed its forecasts for 2025, expecting the sector would grow by just 0.7 per cent.
Concern: Figures from industry body Make UK show that confidence among manufacturers had fallen at its sharpest rate since the second quarter of 2020
Make UK senior economist Fhaheen Khan said ‘Manufacturers are now facing a cost crisis’.
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