Britain's Chancellor of the Exchequer Rachel Reeves visits Maidstone Hospital in Maidstone, England, Tuesday Dec. 10, 2024. (Dan Kitwood/Pool via AP)

Rachel Reeves has been dealt yet another blow as businesses warned the UK economy is “headed for the worst of all worlds” in 2025.

A survey by the Confederation of British Industry found firms expected to reduce both output and hiring at the start of the New Year.

They said the chancellor’s decision to hike employers’ National Insurance in the Budget in October was one of the reasons for the slump in confidence.

Meanwhile, the Office for National Statistics revealed this morning that the economy flatlined between July and September - Labour’s first three months in power - having previously said it had grown by 0.1%.

Alpesh Paleja, the CBI’s interim deputy chief economist, said: “There is little festive cheer........

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