The business group downgraded its growth forecast for 2022 from 3.6% to 3.5% and said inflation would reach 10% in the last quarter – much higher than average wage increases. Expectations for increased investment have also fallen this year, from 3.5% to 1.8%, the BCC report said. The bleak outlook follows a warning from one of the world’s leading economic powers that Britain’s growth next year will be worse than any G20 country other than Russia. There will be no GDP expansion at all in 2023, according to the OECD (Organization for Economic Co-operation and Development). The group said the UK was threatened by rising interest rates and taxes, as well as high inflation leading to rising petrol prices and energy costs. It is an evaluation supported by the BCC. Alex Veitch, the group’s policy director, said “the headwinds in the UK economy are showing little sign of slowing down”. “The war in Ukraine came at a time when the United Kingdom was beginning to recover from COVID, further pushing for corporate profitability,” he said. “The projected decline in business investment is particularly worrying. “It’s vital that urgent action is taken here and we have constructive talks with the government on reviewing capital rights and other incentive policies for business investment.” “Stable and supportive” policies are needed Mr Veitch said growth could also be hit by falling consumer spending, driven by wage increases lagging behind rising costs. “We anticipate that, if trends continue, inflation will return to the Bank of England’s target interest rate only at the end of 2024 …” businesses. Shadow operations secretary Jonathan Reynolds said the Tories’ failure “hinders British operations”. “The Labor Party will grow our economy with our plan to buy, make and sell more in Britain, our promise of climate investment and tax cuts for small businesses now to put our economy on all the cylinders, “he said. A spokesman for the Treasury said the UK had the fastest growth at the G7 last year and that unemployment was at its lowest level in almost 50 years. “While we can not completely isolate the United Kingdom from global pressures, we have a plan for growth and we support people with the cost of living,” they said. “Eight million of the most vulnerable families will receive τουλάχιστον 1,200 in direct payments this year, with all families receiving 400 400. We are also investing in capital, people and ideas to boost growth and living standards in the years to come.”
