LABOUR is choking the UK’s financial sector with tax hikes and red tape, business leaders warn.
The Confederation of British Industry’s latest report shows activity there has fallen at the lowest pace since 2023.
Confidence collapsed to its lowest level in nearly three years.
And bosses warned headcount is set to plunge by 52 per cent.
Nearly half of firms pointed the finger at “the volatile economic climate regulation, and measures”;.
CBI economist Alpesh Paleja said firms will now be hoping they do not face more tax rises in the next .
He said: “Conditions deteriorated in the financial services sector over the second quarter, with business volumes falling at their fastest pace since late 2023 and sentiment dropping sharply.
“Profitability was squeezed further, as firms faced narrowing spreads.
“While activity is projected to stabilise next quarter, firms still expect to cut back on hiring and investment going forward.”;
EX-Labour leader yesterday called for a new two per cent wealth tax on assets over £10million.
