News | Published June 18 2019

BCC says business investment 'hit' by Brexit uncertainty

The British Chamber of Commerce claims that UK businesses will undergo less investment due to Brexit contingency planning.

The report highlighted stockpiling in particular, adding that such activity is "not sustainable" and will "suffocate" investment.

The result of all this, the report says, is a faster than expected decrease in investment this year, with a further albeit not as bad decrease next year too.

However, it might also mean a slight boost in overall GDP growth this financial year.

In their forecast, the BCC predicted that UK GDP growth would be 1.3 per cent this year, but just 1 per cent next year.

Such predictions were premised on the assumption that the UK would leave the EU in an "orderly" fashion, but the report also caution against the "risk" of a no-deal Brexit.

This "subdued" trajectory is, according to the BCC's lead economist Suren Thiru, is likely to persist "for some time".

He continued: "The disruption caused would increase the likelihood of the UK's weak growth trajectory translating into a more pronounced deterioration in economic conditions

"Business communities expect the next prime minister to quickly find a sensible and pragmatic way forward.

“The UK’s low growth trajectory makes clear that we can’t afford for Westminster to keep turning a blind eye to the domestic agenda."

Authored by

The Parliamentary Review

June 18 2019

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