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UK Economy Faces Double Blow from Tariffs and Tax Hikes – ​UK Growth Outlook Slashed by CBI



One of Britain’s top business groups, the Confederation of British Industry (CBI), has sharply lowered its economic growth forecast for 2025 and 2026. Growth is now expected at just 1.2% in 2025 and 1.0% in 2026, down from previous projections of 1.6% and 1.5% respectively. The downgrade comes amid rising headwinds from newly imposed U.S. tariffs and increased domestic payroll taxes.



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