Britain stands at an economic crossroads, with traditional growth engines sputtering and new challenges emerging on the horizon. The CBI’s warning of decisively worsening growth expectations highlights the precarious position of the UK economy as it enters the new year. This gloomy outlook, the weakest in years, comes as firms grapple with the aftermath of a challenging autumn and recent budget announcements, with consumer services bearing the brunt of the downturn.

The services sector, long considered the backbone of the UK economy, is likely to continue facing particularly strong headwinds in the first half of 2025. Consequently, hiring intentions are at their lowest level since the pandemic, leading to the labour market’s previously bright outlook dimming significantly. All eyes are now on Whitehall for decisive action to reignite economic momentum, however after a less than inspiring first few months, expectations are at an all-time low.