UK economic growth to slow to zero as Brexit stockpiling effect ends and businesses slash investment – The Independent
- The political impasse over Brexit threatens to “suffocate” business investment across the UK, with the economy grinding to a halt as a temporary boost from stockpiling comes to an end, the British Chambers of Commerce (BCC) has warned.
- The organisation said firms were putting resources into contingency plans, such as stockpiling, rather than investing in measures aimed at economic growth, which is “simply not sustainable”.
- As a result, the economy is expected to register zero growth in the second quarter of the year, following a 0.5 per cent expansion in the first quarter.
- The BCC’s forecasts for the years ahead assume the UK avoids a “messy and disorderly” exit from the EU, describing it as a “downside risk”.
- The BCC’s head of economics, Suren Thiru, said: “The revisions to our forecast suggest that the UK economy is likely to remain on a disappointingly subdued growth path for some time to come.
Brexit: ‘High price to pay’ for Labour stance, says Tom Watson – BBC
- Labour’s deputy leader Tom Watson has described another Brexit referendum as “the least worst option” and urged his party to throw its weight behind one.
- Mr Watson said Labour would pay “a very high electoral price” if it did not have “a clear position” on Brexit.
- The nuanced position was blamed for Labour’s performance at the European elections – it came third behind The Brexit Party and the Liberal Democrats, with its share of the vote falling to 14%.
Business urges next PM to repair UK’s international reputation – The FT
- The next prime minister needs to repair the reputation of the UK among international investors and “back business” again, according to a speech by the president of the CBI employers’ group directed at the Tories aiming to become the new party leader.
- John Allan called on the next government to take “an unashamedly pro-enterprise course” to work more closely with business.
- The speech in London on Monday is the latest attempt by business leaders to influence the thinking of the next prime minister as the UK enters the next crucial phase of negotiations ahead of the Brexit deadline in October.