Budget 2024: Chancellor Rachel Reeves criticised for 'gloomy' talk as business activity slumps to 11-month low

Rachel Reeves has been criticised for “gloomy” speech arsenic enactment crossed the UK’s backstage assemblage slipped to an 11-month low.

The S&P Global flash UK composite purchasing managers’ scale (PMI) reported a speechmaking of 51.7 successful October, down from 52.6 successful September.

The preliminary information came successful little than City expectations, with economists having pencilled successful a speechmaking of 52.6 for the latest survey.

Any people beneath 50 indicates that enactment is contracting, portion immoderate people supra means it is growing.

Chris Williamson, main concern economist astatine S&P Global Market Intelligence, said: “Business enactment maturation has slumped to its lowest for astir a twelvemonth successful October arsenic gloomy Government rhetoric and uncertainty up of the Budget has dampened concern assurance and spending.

“Companies await clarity connected Government policy, with conflicts successful the Middle East and Ukraine, arsenic good arsenic the US elections, adding to the nervousness astir the economical outlook.”

Sir Keir Starmer and Ms Reeves person struck a pessimistic code astir the Budget successful caller months, informing of “tough decisions”, which is feared to person deed assurance successful immoderate parts of the economy.

More recently, they person sought to onslaught a somewhat much upbeat note.

The Chancellor is wide expected successful the Budget to alteration Britain’s indebtedness rules to unfastened the doorway for the Government to get and walk billions much connected transport and different infrastructure projects.

Ms Reeves argues the taxation raid is needed to plug an alleged £22 cardinal achromatic spread successful the nationalist finances which she says the Tories near the caller Government, a assertion that they deny.

Ahead of a gathering of the International Monetary Fund successful Washington, the Chancellor promised that her Budget volition beryllium an “economic reset” for the UK, and it would put successful the “foundations of aboriginal growth”.

It said UK gross home merchandise is owed to turn by 1.1%, a important upgrade aft predicting 0.7% maturation successful July.