U.K. government to unveil business investment growth plans amid Brexit challenges By Investing.com
As the UK grapples with the economic aftermath of Brexit, Chancellor Jeremy Hunt is preparing to announce new measures aimed at boosting business investment in his upcoming autumn statement. This announcement, anticipated for Wednesday, follows Bank of England Deputy Governor Dave Ramsden’s remarks on Tuesday linking Brexit to subdued UK business investment growth compared to other nations.
Ramsden pointed out that since the 2016 referendum, UK business investment has only grown by about 6% in real terms, a stark contrast to over 25% growth in the United States. He attributed this lag to political and economic uncertainties that have affected the UK’s productive capacity and fiscal policy certainty. These factors have seemingly curtailed the post-global financial crisis upswing in UK business investment, which was disrupted by Brexit-related uncertainty and shifting government policies.
On Monday, speaking at a CBI conference, Chancellor Hunt foreshadowed his plans for enhancing British business investment through new measures aimed at economic growth. The details of these measures are expected to be a focal point in his autumn statement.
Moreover, Governor Andrew Bailey addressed expectations from Members of Parliament regarding falling inflation and its potential to lead to interest rate cuts from their current level of 5.25%. However, he cautioned against overlooking persistent inflation risks, which pose a challenge to achieving the inflation target.
The upcoming autumn statement will concentrate on strategies for fostering business investment growth. It is a crucial step for the UK as it seeks to establish relationship certainty in international trade and economics post-EU departure. The government’s focus on these issues highlights the need for stability and growth in a time marked by significant economic transitions.
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