“The latest GDP data for the UK showed modest growth in May, with retail sales were supported by the good weather. However, the Middle Eastern conflict was reported to be disrupting global supply chains and suppressing output in a variety of sectors, including wholesale, warehousing and travel.
“The IoD’s own data shows that businesses are grappling with sharply rising costs and diminished prospects for revenue growth, in an environment in which uncertainty is becoming normalised. Unfortunately, the actions business leaders are taking to increase business resilience are dragging on broader activity, investment and hiring. Meanwhile government policy activity is adding to business uncertainty, rather than alleviating it.
“In an uncertain and volatile world, challenges facing the UK have sharpened, adding greater urgency to the policy response. The Industrial Strategy is an effective tool for channelling government action to support economic growth, but it falls short in execution – both pace and consistency. Ambitions to raise private sector investment cannot be met if the business tax burden keeps increasing and speculation over capital taxes remains high. Policy needs to better support net zero transition in a pragmatic way, recognise that the rising cost of living for households reflects rising government-imposed costs on business, and enact employment law in a more proportionate fashion, if we’re to deliver better living standards across the country.”
