UK economy entering 2026 amid sharp private sector downturn, says CBI

Business lobby survey finds firms ‘put brakes on key spending decisions’ before autumn budget

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Business leaders have warned that Britain is entering 2026 amid a sharp economic downturn in the private sector, after companies “put the brakes on” investment and hiring before the autumn budget.

In a gloomy snapshot after months of tax speculation, the Confederation of British Industry (CBI) said private sector output was on track to fall in the fourth quarter of 2025.