BUSINESS leaders in Greater Birmingham have called on the government to set out a plan that boosts business confidence and protects the UK.
It follows a low-key Spring Statement on Tuesday (March 3) in which Chancellor Rachel Reeves downgraded the UK’s growth forecast to 1.1 per cent.
And while the Chancellor acknowledged the conflict in the Middle East Greater it has been argues the forecast did not consider the impact on oil and gas supplies and shipping.
The Office for Budget Responsibility (OBR) warned the conflict “could have very significant impacts on the global and UK economies”.
Greater Birmingham Chambers of Commerce (GBBC) has said the government must set out an urgent plan for trade and defence.
Emily Stubbs, head of policy at the GBCC, said: “As heavily trailed in advance, the spring forecast was a low-key affair, setting out expectations for accelerating medium-term growth, but with unemployment set to rise in the near term, and net trade remaining anaemic.
“Our research indicates that prices pressures on Greater Birmingham firms – driven primarily by increased labour costs – remain high, whilst potential implications arising from the Employment Rights Act and associated secondary legislation are set to drive costs up further in the coming months, constraining firm-level investment and growth.
“With GDP still anticipated to grow well below two per cent a year until 2030, we await detail in the Chancellor’s Mais Lecture on how the Government intends to boost international trade, harness artificial intelligence and unlock inclusive growth across the country – all of which will be critical to raising business confidence and unlocking the country’s full economic potential.
“However, as the Chancellor acknowledged, the widening conflict in the Middle East and increasing disruption to oil and gas supplies and shipping remains the elephant in the room, not taken into account in the OBR’s forecast.
“Amid growing geopolitical uncertainty, the Government must unveil its Defence Investment Plan as soon as possible to protect the UK’s security and our economy.”
