Chamber chief calls for business-friendly action
The chief executive of the Black Country Chamber of Commerce has called for business-friendly action from the Government after growth expectations for the UK economy were downgraded.
Corin Crane said: “The news that the British Chambers of Commerce have downgraded their growth forecasts for 2018 and 2019 is perhaps not surprising given widespread economic uncertainty. With protracted Brexit negotiations continuing and the government releasing ‘No Deal’ technical papers, uncertainty for business continues. This, alongside the very real threat of a US-China trade war, means global markets remain volatile due to escalating geo-political tensions."
Growth in 2018 was downgraded from 1.3 per cent to 1.1 per cent and the GDP growth forecast for 2019 is also downgraded from 1.4 per cent to 1.3 per cent.
The latest forecast implies that by 2020 the UK economy will have experienced its second weakest decade of average annual GDP growth on record.
The downgrades have been largely driven by a weaker outlook for trade and investment. Exporters face more subdued growth given continued Brexit uncertainty and the expected slower growth in key markets. Consequently, net trade is expected to make a negative contribution to GDP growth over the forecast period.
The outlook for investment is more subdued than in our previous forecast with persistent economic and political uncertainty expected to increasingly weigh on investment intentions.
Mr Crane said: “Although the UK labour market remains relatively strong, record numbers of vacancies are worrying. This was highlighted recently in our West Midlands Economic Snapshot, completed in partnership with Greater Birmingham and Coventry and Warwickshire Chambers of Commerce. The onus is on the Government to make sure that any changes to UK immigration policy are business-friendly in the short-term, whilst longer-term changes to technical education and apprenticeships are understood across industry.
“Fixing the fundamentals on the domestic front is imperative for the UK to thrive. A favourable deal with Brussels alone will not deliver growth for UK business. Now is the time for business-friendly action – slashing costs, cutting rates and emphasising the need for investment.”
