Britain’s economy will contract by 0.4% next year, according to the Confederation of British Industry (CBI) — a “significant downgrade” on June’s estimate of a 1% rise in GDP.
The business lobby group called on the prime minister and chancellor to "use levers of growth to ensure this downturn is as short and shallow as possible", The Times reported. "Stagflation" - the combination of rising inflation, negative growth and plummeting business investment - will plunge the UK into a year-long recession in 2023, according to the group. The CBI said it said would start to fall from the middle of next year, when an existing "super deduction" tax allowance scheme designed to boost investment will come to an end. Business investment is expected to be 9% below pre...
To continue reading this article...
Join Professional Adviser
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence.
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters.
- Make smart business decisions with the latest developments in regulation, investing retirement and protection.
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes.
