The UK economy faces several years of “anaemic” activity, a business group is warning. The stark warning comes as Boris Johnson’s election slogan that he will get Brexit done by January is being rounded on as a misleading slogan as his plans will lead to years of Brexit negotiations and uncertainty.
The British Chambers of Commerce (BCC) said economic growth was forecast to slow next year to just 1% – its weakest since the financial crisis a decade ago.
By the end of 2020 the UK economy will have experienced its second weakest decade of average economic growth on record, said the BCC.
Household spending is expected to be limited by a slowing labour market, the business group warned in a stark warning on the state of the economy.
The warning is bad news to the Conservatives after the Institute for Fiscal Studies warned austerity is ‘baked in’ a Tory manifesto with a ‘notable’ lack of provision for social care funding.
In a dire warning the IFS found: “even in 2023–24 day-to-day spending on public services outside of health would still be almost 15 per cent lower in real terms that it was at the start of the 2010s.”
The BBC’s head of economics, Suren Thiru, said: “Our forecast points to several years of anaemic activity in the UK economy unless decisive action is taken.
“An expansion in government spending is likely to give a nudge to the UK economy, whoever wins the General Election. However, a slowing global economy and unrelenting political uncertainty are expected to weaken business investment, trade and consumer spending, limiting the UK’s growth trajectory.
“The downside risks to the UK’s economic outlook remain concerningly high. Worsening global trends and uncertainty over the course of Brexit present real dangers for the UK economy.
“More uncertainty in the aftermath of the General Election and a persistent lack of clarity on the UK’s future trading relationships could also result in more muted growth.”
BCC director general Adam Marshall added: “The needs of business have been glossed over in the General Election campaign, and our latest forecast shows the danger of allowing this to continue.
“As soon as the smoke clears from the election battlefield, economic growth must be put front and centre again in Westminster. No incoming government can deliver its promises to the electorate without healthy and thriving business communities, or without a clear and detailed plan for the UK’s future relationship with the EU.
“As long as businesses are held back by Brexit uncertainty, high up-front costs, skills gaps and poor infrastructure, we can expect growth to be mediocre, at best.”
READ MORE: ‘Get Brexit done’ – is an ‘oven ready Brexit’ Boris Johnson’s biggest lie yet?
Labour deserves to form the next government leading economists tell the FT
Gina Miller: tactical voting only way to stop ‘autocratic Tory power grab’ on December 12
Since you are here
Since you are here, we wanted to ask for your help.
Journalism in Britain is under threat. The government is becoming increasingly authoritarian and our media is run by a handful of billionaires, most of whom reside overseas and all of them have strong political allegiances and financial motivations.
Our mission is to hold the powerful to account. It is vital that free media is allowed to exist to expose hypocrisy, corruption, wrongdoing and abuse of power. But we can't do it without you.
If you can afford to contribute a small donation to the site it will help us to continue our work in the best interests of the public. We only ask you to donate what you can afford, with an option to cancel your subscription at any point.
To donate or subscribe to The London Economic, click here.
The TLE shop is also now open, with all profits going to supporting our work.
The shop can be found here.
You can also SUBSCRIBE TO OUR NEWSLETTER .
