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UK Business Confidence Plummets Amid Post-Budget Fallout

British businesses faced a rocky December as economic growth nearly stalled, and job cuts surged at the fastest rate in nearly four years, a reflection of shaken confidence following the government’s October budget.

The latest S&P Composite Purchasing Managers’ Index (PMI) for the UK edged down to 50.4 in December, barely clinging above the crucial 50-point threshold that separates growth from contraction. This was the lowest reading since October 2023 and just a hair below November’s 50.5, reinforcing concerns about the country’s economic trajectory.

Budget Blues Weigh Heavy

The slowdown follows Finance Minister Rachel Reeves’ budget announcement on October 30, which introduced hefty tax hikes for businesses to finance increased public spending. The impact has been profound, with a slump in corporate morale reverberating through the economy. According to recent data, Britain’s economy stagnated in the three months leading up to September. The Bank of England’s forecast of flatlining growth in the final quarter of 2024 appears to align with these PMI figures.

Tim Moore, Economics Director at S&P Global Market Intelligence, highlighted the persistent gloom:
“December saw no improvement in business optimism following the budget, with growth expectations for the year ahead stuck at November’s 23-month low.”

Job Cuts Hit Hard

Companies slashed jobs at a rate not seen since January 2021, during the height of COVID-19 lockdowns. Rising costs, including a looming increase in employer social insurance contributions set for April, were the main driver of these cuts, according to S&P Global. Nearly one in four firms reported a reduction in payroll, marking the sharpest decline in over 15 years outside of pandemic conditions.

Costs Climb, Optimism Fades

The PMI’s measure of future output hit its lowest point since December 2022, mirroring the uncertainty sparked by former Prime Minister Liz Truss’ “mini-budget.” Meanwhile, input costs for businesses rose at their fastest pace since April, squeezing margins further.

Sectors across the board felt the strain. December’s services PMI, a significant contributor to the composite index, was revised down to 51.1 from an earlier estimate of 51.4. Manufacturing fared even worse, with its PMI dropping to an 11-month low of 47.0, down from an initial 47.3.

Looking Ahead

While business groups have criticised the budget’s immediate impact, some economists believe increased government spending could provide a short-term boost to the economy in 2025. For now, however, companies are grappling with an increasingly challenging environment, where rising costs and regulatory pressures continue to erode confidence.

This ongoing turbulence leaves many questioning how long UK businesses can tread water in such stormy conditions.

Forbes Middle East Unveils 100 Most Powerful Businesswomen Of 2025

Forbes Middle East has unveiled its much-anticipated 2025 ranking of the region’s top businesswomen, spotlighting influential leaders reshaping industries and driving meaningful transformation. The list was based on business size, individual accomplishments, leadership impact, and corporate social responsibility initiatives.

Top Spot For Hana Al Rostamani

For the third consecutive year, Hana Al Rostamani, Group CEO of First Abu Dhabi Bank (UAE’s largest bank by assets), claims the top position. In addition to retaining her position in the Forbes Middle East ranking, she was also featured on Forbes’ 2024 list of the World’s Most Powerful Women, securing the 60th position globally. Under her leadership, the bank achieved an impressive $3.5 billion in net profits and $334.8 billion in assets in the first nine months of 2024.

Rising Stars In The Top 10

Shaikha Khaled Al Bahar of NBK Group and Shaista Asif, cofounder and Group CEO of PureHealth Holding, take the second and third spots respectively, completing the top three.

The top 10 remains largely unchanged from last year, with Tayba Al Hashemi of ADNOC Offshore, Alisha Moopen of Aster DM Healthcare GCC, and Suzanne Al Anani of Dubai Aviation Engineering Projects (DAEP) making their debut in the top 10. In total, 27 new leaders have joined the list this year.

A Diverse And Powerful Group Of Women

This year’s list features 100 women from 32 sectors and 29 nationalities, underlining the diversity of talent driving the region’s progress. The banking and financial services sector leads with 25 entries, followed by healthcare and technology with nine each, and venture capital with five. Remarkably, 40% of the top 10 women are from the banking and financial services sector. Notably, Shaista Asif (PureHealth Holding) and Alisha Moopen (Aster DM Healthcare GCC) are the only non-Arab women in the top 10.

UAE Leads With 46 Leaders

The UAE continues to dominate, with 46 of the women on the list hailing from the country, solidifying its status as a global business hub. Egypt follows with 18 influential women, and Saudi Arabia claims nine entries. Egyptians lead in representation, followed by Emiratis and Lebanese women.

Empowering Women Through Initiatives

Several of the leaders have focused on upskilling and creating opportunities for women. Susana Rodriguez Puerta launched the ‘sAIdaty’ initiative in collaboration with the Dubai Business Women Council, aimed at providing 500 female council members in the UAE with AI skills. Similarly, Lamia Tazi of SOTHEMA collaborated with the Foundation for Research, Development, and Innovation in Science and Engineering to provide scholarships to PhD students from low-income backgrounds.

Click here for the full list.

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