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Manufacturing companies have warned that hopes of an economic boost under the current Government have been “markedly dimmed” after the Budget.
Figures from industry body Make UK show confidence among manufacturers had fallen at its steepest 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 an increase in National Insurance contributions for employers and the minimum wage.
Make UK forecasts that British manufacturing will contract by 0.2 per cent this year, down from 0.5 per cent forecast in September. It also cut its forecasts for 2025, expecting the sector to grow just 0.7 percent.
Concern: Figures from industry body Make UK show confidence among manufacturers had fallen at its steepest 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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