Skip to content
Search

Latest Stories

UK economic growth will 'grind to a halt', warns British Chambers of Commerce

The business group said inflation would reach 10 per cent in the last quarter

UK economic growth will 'grind to a halt', warns British Chambers of Commerce

THE British Chambers of Commerce (BCC) has warned that the economic growth in UK will "grind to a halt" in 2022 before briefly falling into negative territory, according to a report.

It downgraded the growth forecast to 3.5 per cent from from 3.6 per cent, and said inflation would reach 10 per cent during the October-December quarter, the Sky News reported. Investment growth expectations have also been slashed from 3.5 per cent to 1.8 per cent.


According to the BCC, the UK was threatened by rising interest rates and taxes, as well as the high inflation that's leading surging petrol prices and energy costs.

Recently, the organisation for economic co-operation and development has said that Britain's growth in 2023 will be worse than any G20 country except Russia as there will be no GDP expansion .

Reports suggested that the average cost of filling a typical family car with petrol could exceed £100 for the first time.

Alex Veitch, policy director of BCC, said that the war in Ukraine came just as the UK was beginning a Covid recovery, placing a further squeeze on business profitability.

"The forecast drop in business investment is especially concerning. It is vital that urgent action is taken here, and we are having constructive conversations with the government about its review of capital allowances and other policies to incentivise business investment. Stable and supportive' policies needed," Veitch was quoted as saying by the Sky News.

"Growth could also be hit by falling consumer spending, caused by wage increases lagging behind rising costs. We forecast that, if trends continue, inflation will only return to the Bank of England's target rate at the end of 2024."

Shadow business secretary Jonathan Reynolds said that Labour would grow the economy with its plan to buy, make, and sell more in Britain, climate investment pledge, and tax cuts for small businesses.

A Treasury spokesperson said that the government has a plan for growth, and are supporting people with the cost of living, adding that the country had the fastest growth in the G7 last year and unemployment numbers were the lowest in nearly 50 years.

"Eight million of the most vulnerable families will receive at least £1,200 of direct payments this year, with all families receiving £400. We're also investing in capital, people and ideas to boost growth and living standards in the years to come," the spokesperson said.

More For You

Starmer Mandelson

Starmer talks with Mandelson during a welcome reception at the ambassador's residence on February 26, 2025 in Washington, DC.

Getty

Starmer under pressure from party MPs after Mandelson dismissal

PRIME MINISTER Keir Starmer is facing questions within the Labour party after the sacking of US ambassador Peter Mandelson.

Mandelson was removed last week after Bloomberg published emails showing messages of support he sent following Jeffrey Epstein’s conviction for sex offences. The dismissal comes just ahead of US president Donald Trump’s state visit.

Keep ReadingShow less
Nepal’s new leader pledges to act on Gen Z calls to end corruption

Officials greet newly-elected Prime Minister of Nepal's interim government Sushila Karki (R) as she arrives at the prime minister's office in Kathmandu on September 14, 2025. (Photo by PRABIN RANABHAT/AFP via Getty Images)

Nepal’s new leader pledges to act on Gen Z calls to end corruption

NEPAL’s new interim prime minister Sushila Karki on Sunday (14) pledged to act on protesters’ calls to end corruption and restore trust in government, as the country struggles with the aftermath of its worst political unrest in decades.

“We have to work according to the thinking of the Gen Z generation,” Karki said in her first address to the nation since taking office on Friday (12). “What this group is demanding is the end of corruption, good governance and economic equality. We will not stay here more than six months in any situation. We will complete our responsibilities and hand over to the next parliament and ministers.”

Keep ReadingShow less
UK secures £1.25bn US investment ahead of Trump’s visit

US president Donald Trump and UK prime minister Sir Keir Starmer arrive at Trump International Golf Links on July 28, 2025 in Balmedie, Scotland. (Photo by Jane Barlow-WPA Pool/Getty Images)

UK secures £1.25bn US investment ahead of Trump’s visit

THE British government has announced over £1.25 billion ($1.69bn) in fresh investment from major US financial firms, including PayPal, Bank of America, Citigroup and S&P Global, ahead of a state visit by president Donald Trump.

The investment is expected to create 1,800 jobs across London, Edinburgh, Belfast and Manchester, and deepen transatlantic financial ties, the Department for Business and Trade said.

Keep ReadingShow less
Nearly 150,000 join anti-migrant protest in London as clashes erupt

Protesters wave Union Jack and St George's England flags during the "Unite The Kingdom" rally on Westminster Bridge by the Houses of Parliament on September 13, 2025 in London, England. (Photo by Christopher Furlong/Getty Images)

Nearly 150,000 join anti-migrant protest in London as clashes erupt

MORE THAN 100,000 protesters marched through central London on Saturday (13), carrying flags of England and Britain and scuffling with police in one of the UK's biggest right-wing demonstrations of modern times.

London's Metropolitan Police said the "Unite the Kingdom" march, organised by anti-immigrant activist Tommy Robinson, was attended by nearly 150,000 people, who were kept apart from a "Stand Up to Racism" counter-protest attended by around 5,000.

Keep ReadingShow less
Piyush Goyal

Piyush Goyal recalled that in February, Narendra Modi and Donald Trump had instructed their trade ministers to conclude the first phase of the bilateral trade agreement (BTA) by November 2025. (Photo: Getty Images)

Getty Images

Trade talks with US moving forward positively, says Indian minister Goyal

INDIA’s commerce and industry minister Piyush Goyal on Thursday said that negotiations on the proposed trade agreement between India and the United States, which began in March, are progressing in a positive atmosphere and both sides are satisfied with the discussions.

He recalled that in February, Indian prime minister Narendra Modi and US president Donald Trump had instructed their trade ministers to conclude the first phase of the bilateral trade agreement (BTA) by November 2025.

Keep ReadingShow less