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

Air India

The Amritsar-Birmingham and Amritsar-London Gatwick routes will each increase from three to four weekly flights, while Ahmedabad-London Gatwick will go from three to five weekly flights.

Air India to increase flights between UK and India from March 30

AIR INDIA will increase flight frequencies on key routes as part of its Northern Summer schedule, effective 30 March 2025.

In the UK, the airline will add three more flights on the Delhi-London Heathrow route, increasing from 21 to 24 weekly flights using a mix of A350-900 and upgraded B787-9 aircraft.

Keep ReadingShow less
Pablo-Escobar-merchandise-Getty

Escobar, killed by security forces in 1993, remains a figure of global interest, with his image appearing on souvenirs like T-shirts, mugs, and keychains. (Photo: Getty Images)

Colombia considers ban on Pablo Escobar merchandise

COLOMBIA’s Congress is considering a bill that would ban the sale of merchandise featuring drug lord Pablo Escobar and other convicted criminals.

The proposed law aims to curb the glorification of Escobar, who was responsible for thousands of deaths during his time leading the Medellín cartel, reported BBC.

Keep ReadingShow less
Assisted dying bill: Judge approval scrapped for expert panel safeguard

Polls show most Britons back assisted dying, with supporters calling for the law to reflect public opinion.

Assisted dying bill: Judge approval scrapped for expert panel safeguard

Eastern Eye

THE proposed new assisted dying law for terminally ill people will be amended to remove the requirement that a high court judge sign off on each case, Labour MP Kim Leadbeater said on Tuesday (11).

Opponents of assisted dying said the change would weaken the safeguards around protecting vulnerable people from being coerced or pressured into taking their own lives.

Keep ReadingShow less
Andrew Malkinson

Malkinson, 59, has been struggling financially since his release and has been on universal credit for 19 months. (Photo: X/@NotThatBigIan)

Wrongful rape conviction: Andrew Malkinson to get 'significant' compensation

ANDREW MALKINSON, who spent 17 years in prison for a rape he did not commit, will receive a six-figure interim compensation payment from the Ministry of Justice.

The payment comes more than a year after his conviction was overturned by the Court of Appeal in July 2023.

Keep ReadingShow less
IMF team visits Pakistan to assess governance and corruption reforms

The assessment will shape structural reforms and examine protections for property rights and foreign investments

IMF team visits Pakistan to assess governance and corruption reforms

Eastern Eye

A TECHNICAL team from the International Monetary Fund met Pakistan’s chief justice Yahya Afridi on Tuesday (11) to conduct a Governance and Corruption Diagnostic Assessment under the 2024 Extended Fund Facility programme.

The IMF team is in the country for a week-long trip to scrutinise the judicial and regulatory framework tackling governance and corruption as part of a £5.6 billion loan agreed last year.

Keep ReadingShow less