British businesses are more pessimistic about their economic prospects than those in heavily sanctioned Russia as bosses plan mass job cuts in the wake of Rachel Reeves’s record tax raid.

A closely watched survey suggested that UK sentiment had plunged faster than any other major economy since October, when the Chancellor used her maiden Budget to announce a record £40bn of tax rises.

The poll by S&P Global suggested the UK was headed towards stagflation, with bosses planning to shed jobs faster than other major economies against a backdrop of the weakest global hiring plans since lockdown.

The UK economy has barely grown since Labour took power last summer, while inflation now stands at 3pc, which is almost at the level at which Andrew Bailey will have to write to the Chancellor explaining why price rises are so far away from the Bank of England’s 2pc target.

Businesses are concerned by a raft of cost increases from April that will see their National Insurance bills increase sharply alongside big rises in the minimum wage, which several business surveys have indicated will lead to higher prices and unemployment.

Source: FINANCE.YAHOO