A leading business group has called on the Prime Minister and Chancellor to take “vital action” to prevent a recession after lowering their prospects for economic growth in the UK.
The CBI warned that there was a risk that the economy would be “far behind” politics in the coming months due to the cost of living crisis, airports struggling to cope, rail strikes planned “Groundhog Day” battles with the EU. the Northern Ireland Protocol.
He said that with less than 40 days to go before parliament enters its summer break, the countdown is underway for action.
The CBI has lowered its growth prospects to 3.7% for this year, from 5.1% previously, and only to 1% in 2023, from 3%.
He said he believes inflation is expected to remain high until the fall, rising to 8.7% in October, leading to a “historic tightening” of household incomes, which will affect consumer spending.
Tony Danker, CBI’s director general, said: “Let me be clear: we hope the economy is virtually stagnant. will make you feel like one for too many people.
“Times are tough for companies facing rising costs and for lower – income people worried about paying bills and putting food on the table.
“It simply came to our notice then.
“We have had weeks of politics with the country on the brink of a summer of blockades.
“There is only a small window to recreation. Inaction this summer would put a stagnant economy in stone in 2023, with the recession a very lively concern.
“We must act now to build trust.”
The CBI called for measures to include measures to alleviate labor shortages and skills.