The British Chambers of Commerce (BCC) forecasts a challenging year for UK businesses, revising its growth outlook down to 0.9% from 1.3%. Increased government spending will drive this limited growth, while inflation is expected to remain above the Bank of England’s target until late 2027. Additionally, unemployment is projected to rise to 4.6% by year-end. The BCC anticipates only one interest rate cut to 4.25% by the end of 2025. Overall, Vicky Pryce underscores significant challenges, emphasizing the need for a stronger foundation for business investment amid global uncertainties.
The British Chambers of Commerce warns of a challenging year ahead for UK businesses, anticipating slow growth and rising cost pressures affecting investment.
The BCC has downgraded its growth forecast for the UK economy to 0.9% this year, down from 1.3%, reliant primarily on increased government spending.
With inflation expected to persist above target until late 2027, the BCC predicts a slow response from the Bank of England regarding interest rate cuts.
Chair Vicky Pryce emphasized the lack of secure foundations for business investment, highlighting the stubborn inflation and global uncertainties impacting the economy.
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