23 April 2025, 14:12

By Ben Ramanauskas

Yesterday, the IMF downgraded the UK’s economic growth forecast by a third from 1.6% to 1.1%.

Trump’s trade war is the main reason cited by both the IMF and the UK Government for this, but while tariffs will certainly be damaging, they are not the only reason for the country’s economic malaise.

The Government spent last summer talking down the UK economy. In doing so, it undermined business and consumer confidence – meaning that households and firms were less likely to spend and invest.

Last Autumn’s Budget then placed a heavier burden on firms by hiking employers’ National Insurance Contributions and significantly increasing the Minimum Wage. This, combined with the forthcoming Employment Rights legislation, means that businesses are facing additional costs and so will have no choice but to hire fewer workers, invest less, and raise prices for consumers.

These decisions are........

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