“Today’s Spring Statement confirmed that the UK economy is heading in the right direction, but a further acceleration is needed. With GDP expected to grow well below two per cent a year until 2030, unemployment set to rise in the near term and net trade remaining anaemic there is more to do. Crucially, the OBR’s inflation forecast does not take into account the widening conflict in the Middle East and increasing disruption to oil and gas supplies and shipping. That inevitably adds a fresh element of uncertainty on prices and government borrowing. Recent BCC research shows more firms want to expand, with nearly half intending to grow this year, compared to a third in 2025. To turn that optimism into a reality the government is right to focus on boosting exports, increasing regional investment and transforming productivity. The immediate priorities must be accelerating long overdue business rates reform and making sure changes to employment rights don’t add unnecessary costs. Alongside this, firms need policies that help them invest in skills and AI to increase productivity.”
“Trade is also vitally important. Tariffs aren’t going away and the EU Reset needs to be properly handled to give British firms the best platform possible to grow exports. Finally, with growing geopolitical uncertainty, we need to get Defence right. The Government must unveil its Defence Investment Plan as soon as possible. It’s vital for the UK’s security and our economy. Clear spending decisions would unlock private investment, support SMEs, and boost jobs, skills and regional growth. But it is crucial that government procurement gives smaller firms the chance to compete. The Plan also strengthens the UK’s case for access to the EU’s defence finance facility. That could give British firms a chance to bid into major European defence projects and secure further export-led growth.”
The full Office for Budget Responsibility Economic and Fiscal Outlook can be found here.
More info: https://www.britishchambers.org.uk/
