Businesses in UK say budget will stifle growth

Businesses in the United Kingdom expect a bumpy ride in the coming months because of the new government's first annual budget.

The financial plan, which was set out by the country's Chancellor of the Exchequer Rachel Reeves at the end of October, will have a significant negative impact on enterprises, Britain's biggest business lobby group, the Confederation of British Industry, or CBI, said on Monday.

After surveying its member businesses, the CBI said tax rises contained in the budget mean companies now expect to scale back expansion plans, reduce workforces, and abandon recruitment drives.