Blow to Rachel Reeves as leading businessman suggests recession could be ‘around the corner’

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A leading British businessman has warned Rachel Reeves that her Budget “spooked business” as he suggested a recession could be “around the corner”.

James Reed, chairman of the recruitment giant, Reed, urged the chancellor to change course.

Mr Reed told the BBC”s Sunday With Laura Kuenssberg that the economy was “cooling” and has been “for several months”.

He added that data for November showed that vacancies had fallen by 13 per cent month on month, which he described as a “significant decline”.

He added that when he had seen similar figures in the past that had been an indicator that recession was “around the corner”.

Labour’s Budget “has spooked business”, he said, as he urged the chancellor to “rethink” her decision to increase employer’s national insurance.

Talking about the national insurance hike last month, the co-founder of Cobra Beer Lord Bilimoria told Times Radio: “If they can hear, this is not just me. This is a unanimous voice of business saying you have not listened to us. This is not going to generate growth.

“This is going to damage business. Please listen to us. Please work with us. And I’m up for them to do that. It’s not too late. It’s not too late.”

In November Ms Reeves was accused by business chiefs of making it hard to invest in Britain, prompting her to insist there was no alternative.

The boss of the CBI warned that her measures would deter companies from expanding. Squaring up to her detractors, she told the CBI conference: “I have heard a lot of feedback about my Budget but not any alternative suggestions.”

A Treasury spokesperson said: “With our public services crumbling and an inherited £22bn fiscal black hole, we had to make difficult choices to fix the foundations of the country and restore desperately needed economic stability.

“Independent forecasts made by the Office of Budget Responsibility indicate that the economy will grow next year, and that employment will rise over the next three years. Meanwhile we have been able to begin fixing the public services which will see waiting lists come down and more teachers in schools.”