"The big picture is that the UK economy has stalled again as pre-Budget jitters have frozen activity in the private sector. This is confirmed by multiple surveys across the full range of businesses - including services, retail, manufacturing, construction, and the housing and labour markets. The Chancellor must use her November statement to restore some confidence among businesses, consumers and investors. If taxes are raised, this should at least be done in ways that reduce uncertainty once and for all."
"This could be achieved by broader-based increases in the main taxes, which would raise more money in ways that are less likely to distort the economy, combined with an increase in the fiscal headroom to protect against future shocks. But it would clearly be much better to focus on controlling public spending and freeing the private sector to drive growth instead."
Monthly GDP grew by 0.1% in August following a downwardly revised 0.1% contraction in July, leaving activity flat over the latest two months. The three-month growth rate ticked up from 0.2% to 0.3% but is likely to fall again in September. The UK economy has stalled as pre-Budget jitters have frozen private-sector activity. Surveys show weakness across services, retail, manufacturing, construction, housing, and labour markets. The Chancellor must use the November statement to restore confidence among businesses, consumers and investors. Tax increases should reduce uncertainty, ideally via broader-based main tax rises or, preferably, by controlling public spending and enabling private-sector-driven growth.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]