Recession fears will grow without clear growth plan, say C&W chamber

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Recession fears will grow without clear growth plan, say C&W chamber

The government must do more to boost a “fragile” economy and quell fears the UK could head into a recession at the end of the year, business leaders in Coventry and Warwickshire have said.

The Office for National Statistics (ONS) data has revealed that gross domestic product (GDP) rose by 0.3 per cent in November after declining by the same percentage points in October – outgrowing expectations.

Recession fears will grow without clear growth plan, say C&W chamber

But it has declined by 0.2% over the past three months and the ONS said it has shown ‘little growth’ over the past year, leading economists to fear the country could be at risk of recession by the end of the year.

Corin Crane, the Chief Executive of Coventry and Warwickshire Chamber of Commerce, said: “With inflation slowly declining and GDP showing flickers of recovery, we understand the Government’s cautious approach to economic policy.

“But with slow GDP growth causing concern for the country, now is the time for them to seize the moment and tell us their plans to boost business and a stuttering economy.

“High interest rates and a lack of skilled workers are two of the most common issues that businesses both locally and across the UK are needing to tackle before businesses can have confidence in being able to grow in the long-term.

“As the build-up to the election gathers pace, it is vitally important that politicians from all sides put business at the centre of their plans, as they are the heartbeat of the economy and have a vital role to play in making the UK an attractive destination to invest in from overseas, too.”

Alex Veitch, Director of Policy and Insight at the British Chambers of Commerce, added: “Today’s ONS data, showing GDP grew 0.3% in November, but fell 0.2% in the three months to then, indicates how fragile UK economic growth is right now.

“It’s likely the economy will be stuck in the slow lane for the foreseeable future. Our latest Quarterly Economic Forecast expects growth below 1.0% for the next two years.

“The Chancellor’s decision to make full expensing permanent was welcome, but more needs to be done to help businesses invest and drive economic growth. Despite the headline rate of inflation easing, firms are continuing to battle with high interest rates, recruitment difficulties, and tough international trading conditions.

“Businesses are crying out for a long-term economic plan that prioritises growth. In the upcoming budget, and the election campaign to come, that must be the priority for all politicians.”

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