We offer a range of high quality accounting, financial and business services in and around Milton Keynes.

UK growth forecast downgraded by ICAEW

17 Sep 2019

The Institute of Chartered Accountants in England and Wales (ICAEW) has downgraded its growth forecast for the UK economy as a result of continuing Brexit uncertainty, falling business investment and declining output.

In its economic insight for the third quarter of this year, the ICAEW now expects growth of 1.1%, down from 1.5%, with business investment down by 0.5%, continuing the downward trend of the past 18 months.

Meanwhile, output fell by 0.2% during the second quarter, as a result of continuing manufacturing weakness and companies reducing stockpiling activity as March's Brexit deadline came and went.

Commenting on the report, ICAEW Chief Executive, Michael Izza, said: 'After the 2008 recession, business investment recovered, but since 2015 it has stalled and gone into reverse.

'While the overriding priority for the government must be to get a good deal, an investment boom is unlikely even if the UK secures an 'orderly' departure from the EU. A withdrawal agreement would not eliminate uncertainty over the future UK-EU trading relationship, and we know structural issues mean firms are more likely to spend money on labour than capital.'

The ICAEW also suggested that structural and measurement issues – such as the focus on services rather than manufacturing and the blurring of lines between consumer and investment spending – will have a 'dampening effect' on investment.

Register

Why not register to receive our monthly newswire? This is packed full of essential business news and handy tax tips to help save you money.

Learn more

Tax Calendar

Our handy tax calendar provides an overview of the key tax dates for your diary.

Learn more

Calculators

B2B’s interactive tax calculators can be used to calculate VAT due, the taxable benefits on your company car and how much your savings are worth.

Learn more

Home | About us | Contact us | Logon | Register | Accessibility | Disclaimer | Help | Site map |

© 2024 B2B Business Advisors Limited. All rights reserved.

We use cookies on this website, you can find more information about cookies here.
Chartered Tax Adviser

Registered in England, Company Registration number – 7906656. Registered Office – 58b High Street, Stony Stratford, Milton Keynes, MK11 1AQ. Registered with the Chartered Institute of Taxation as a firm of Chartered Tax Advisers. Registered to carry out audit work and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales.