Business groups call on next government to boost lacklustre growth
Business groups have called on the next government to tackle the slowing UK economy after data today showed British GDP stagnated in October.
The economy’s performance was below expectations of a 0.1 per cent expansion, but marked an improvement from the 0.1 per cent drop witnessed a month earlier, figures from the Office for National Statistics (ONS) showed.
Read more: UK GDP: Economy stagnates in run-up to General Election
“The next government must make a priority of spurring business investment and reducing uncertainty, to boost business confidence and drive-up our productivity,” said Tej Parikh, chief economist at the Institute of Directors (IOD).
Suren Thiru, head of economics at the British Chambers of Commerce (BCC), pointed to problems with “high upfront costs and skills gaps that hold firms back”. He said: “The next government must deal with these issues as an urgent priority.”
The UK economy expanded just 0.7 per cent in October compared to a year earlier, the ONS said, the slowest rate in over seven years. It is the latest sign the economy is slowing considerably.
In the three months to October, growth also flatlined. Over the period, the UK’s manufacturing recession continued, with production falling 0.7 per cent. The services sector, which makes up around 75 per cent of the economy, grew by 0.2 per cent.
Labour shadow chancellor John McDonnell said a Tory win at the 12 December General Election would spell “five more years of economic failure and stagnation”.
Chancellor Sajid Javid said: “Getting Brexit done will give businesses and families… certainty and confidence.”