MP, Shadow Business and
Trade Secretary, said:
“Rachel Reeves is gearing up to deliver the most grimly
anticipated Budget in living memory – and retail confidence is
falling through the floor as businesses fear the worst.
“Investors fleeing, jobs evaporating and prices rising: these are
the fruits of Labour's tax, spend and borrow doom-loop, and
ordinary people are paying the price.
“Reeves doesn't have the backbone to face down Labour's left-wing
backbenchers, so she is hiking taxes to pay for a welfare
splurge. Only the Conservatives have the strong team and the plan
to cut taxes and deliver a stronger economy – including by
backing high streets and abolishing business rates for 250,000
retail, hospitality and leisure firms.”
ENDS
Notes to Editors
-
The Confederation of British Industry (CBI) has found
that concern about the Budget has led to the steepest fall in
retail sentiment in 17 years. The CBI's Distributive
Trades Survey found that retail sales fell at a ‘fast pace' in
the year to November, with retailers' confidence about the next
quarter falling to a 17 year low, with headcount falling again
(CBI, Press Release, 25 November 2025, link).
-
Alpesh Paleja, Deputy Chief Economist at the CBI, said
that because of Budget uncertainty, ‘businesses are holding
back plans for investment and hiring.'
PALEJA: ‘Retailers continue to grapple with a long
spell of weak demand, as households remain cautious around
day-to-day spending. With all eyes on the forthcoming Budget,
uncertainty in the run-up has meant that businesses are holding
back on plans for investment and hiring. The Chancellor must
avoid pulling the business tax lever once again, at risk of
further curtailing firms' efforts to build a more resilient,
dynamic economy. Businesses want bold decisions to wrestle back
the government's fiscal headroom and get the economy on a solid
path to prosperity'. (CBI, Press Release, 25 November
2025, link).
