The demand for UK goods and services “is growing across the globe”, a new study has revealed. Continue reading Latest trading figures “demonstrate the growing appetite for British produce outside of the EU”
The British Chambers of Commerce (BCC) has this month downgraded its growth expectations for the UK economy in response to “continued Brexit uncertainty”.
In its quarterly economic forecast for Q1 2019, the figures show that UK GDP growth has been reduced to 1.2 per cent in 2019 and 1.3 per cent in 2020 as a result of “weak business investment” and uncertainty around future trading policies.
The estimated figure for GDP growth in 2019 would represent the “weakest growth” in more than a decade, said the BCC.
It added that a weaker outlook for business investment and trade “amid continued Brexit uncertainty” and slower than expected global economic growth were the “main drivers” behind the downgrades to GDP growth.
The research also reveals that business investment is forecast to decline to one per cent, described as the “weakest outturn” since the financial crisis in 2009. Likewise, the BCC estimates that net trade is expected to make a “negative contribution to GDP growth” over the same period, in response to a lack of clarity on the UK’s future trade arrangements and other global trade tensions.
Accordingly, export growth is forecast at 1.8 per cent, 1.7 per cent, and 1.7 per cent, compared to import growth of two per cent, 2.2 per cent, and 2.3 per cent respectively.
Suren Thiru, Head of Economics at the BCC, said: “The downgrades to our near-term growth outlook are a further indication that the UK economy is set to remain on a historically weak growth trajectory for some time to come, unless decisive action is taken.
“Brexit uncertainty, the financial squeeze on business and consumers and a slowing global economy are expected to weigh significantly on business investment and trade and limit the extent to which consumer spending will be boosted by a stronger real wage growth.”
Echoing the BCC’s views, Adam Marshall, Director General of the British Chambers of Commerce, added: “It is clear that political inaction has already had economic consequences, with many firms hitting the brakes on investment and recruitment decisions as a result of ongoing uncertainty. Worse still, some companies have moved investment and growth plans as part of their contingency preparations. Some of this investment may never come back to the UK.”
Barclays bank have announced plans for a major lending fund worth £14 billion pounds, which will help small and medium enterprises (SMEs) to flourish once the UK has left the European Union (EU). Continue reading Barclays announce £14 billion fund to support UK businesses
The Bank of England’s (BoE) Monetary Policy Committee (MPC) has unanimously voted to maintain the UK interest rate at 0.75 per cent amid uncertainty about the potential nature and timing of the UK’s withdrawal from the European Union. Continue reading BoE holds interest rates as businesses cut back on investment ahead of Brexit
The Government has announced details of the first public consultation on its plans to make HM Revenue & Customs (HMRC) a secondary preferential creditor for certain tax debts which are paid by employees and customers after the insolvency of a business. Continue reading Government announces consultation for plans to make HMRC a preferential creditor after insolvency
MP’s are backing calls for changes to the current tax regime in a bid to halt the current decline in UK high streets and town centres and allow them to flourish in the future. Continue reading MP’s calling for more to be done to help the high street
Although the government has stated that cuts in corporation tax will ultimately increase revenue, HMRC has argued that it could actually cost the public around £6.2 billion a year. Continue reading Could corporation tax cuts lose the UK £6.2 billion a year?
In November, Britain saw the largest rise in overall real wages since September 2016, raising the spending power of the average British worker to the highest it has been in two years. Continue reading Employment and overall wages hit record highs
For the sixth year in a row, sales have fallen on Britain’s high streets in December. Continue reading High Street sales continue to fall in December as retailers faced worst sales on record
UK growth is stagnating as a result of heightened Brexit uncertainty and other economic pressures, the British Chambers of Commerce (BCC) has warned. Continue reading Uncertainty stalling UK economic growth, warns BCC report