Fears grow as UK factories hit by worst supply chain shortages since mid-70s

CBI survey of businesses reveals concern a week before chancellor delivers budget and spending review

Britain's manufacturers are struggling with their worst supply shortages since the mid-1970s, as fears grow in the sector over the economic fallout from rising costs and a lack of key materials.

Almost two-thirds of the businesses surveyed in the snapshot from the Confederation of British Industry (CBI) warned that shortages of components would hit factory output in the next three months.