LABOUR-loving ex-footballer Gary Neville today tore into Rachel Reeves for hammering businesses with tax hikes.

The ex-Manchester United ace, who campaigned and cast his vote for Sir Keir Starmer, admitted the Chancellor’s national insurance hike on employers “could have been held back”.

The businessman told Sky News: “I honestly don’t believe that, to be fair, companies and small businesses should be deterred from employing people.

“So, I think the National Insurance rise was one that I feel probably could have been held back, particularly in terms of the way in which the economy was.”

Mr Neville said he backs Labour’s minimum wage hike – but warned that tax raids on businesses were becoming a serious “challenge”.

Responding to the stinging rebuke, Tory MP Ben Obese-Jecty said: “When even Gary Neville is critical of the National Insurance rises in the disastrous Labour budget, it’s fair to say that Rachel Reeves has even lost the Labour changing room.”

A Conservative insider added: “Gary Neville is clearly discovering that if you play silly games, you win silly prizes.”

Meanwhile, British business activity is forecast to shrink at its fastest pace since the 2020 pandemic.

The Confederation of British Industry today revealed a “wave of pessimism” has swept through industry since Labour took the reins.

Economists warned the “negative sentiment” shows no signs of easing, with the economy set to nosedive further over the next three months.

The CBI’s business barometer found bosses are still grappling with the fallout from the Chancellor’s £25bn national insurance raid.

Firms also remain wary of the ripple effects of global trade policies, even though the UK has dodged the worst of Donald Trump’s tariffs.
Alpesh Paleja, the CBI’s deputy chief economist, said: “Firms continue to face testing conditions, with expectations pointing to another quarter of falling activity across the economy.

“While not worsening, the persistently negative outlook underlines the fragility of demand conditions.

“Against this backdrop, businesses continue to cite headwinds from adjusting to higher employment costs, energy prices and continued uncertainty from a volatile global environment.

“With few signs of recovery on the horizon, firms are focused on managing costs and streamlining processes in what looks set to be a subdued second half of the year.”