WIREDGOV

Ben Jones, CBI Lead Economist, responded to latest GDP figures for Q3 2024

“The UK economy stalled over the third quarter. Uncertainty ahead of the Budget probably played a big part, with firms widely reporting a slow-down in decision making. Hopefully this will prove to be a blip. We still expect the economy to return to a path of modest growth in the year ahead. But downside risks to the outlook have increased.

“The Budget has set off warning lights for business. The hike in National Insurance Contributions alongside other increases to employers’ cost base will add to the burden on business. And it is expected to trigger a more cautious approach to pay, hiring and investment as companies work through what it means for their own budgets. 

“The Government must stay the course to drive long-term growth with policies that give business certainty and confidence to invest. Firms are looking for signs of progress on its Industrial Strategy, for example, or on reforms to business rates and the apprenticeship levy. By prioritising these the government can unlock much needed private sector investment in our infrastructure and net zero transition."

GDP first quarterly estimate, UK - Office for National Statistics