CBI: UK faces decade of lost growth without action

Confederation of British Industry (CBI) has said that economic problems will last into next year as business investment is lacking, prices rising and the economy slowing. And according to CBI boss Tony Danker, is no action is taken the impact on economic growth could last a decade.

The CBI expects the economy to contract by 0.4% next year and that the government needs to take action to boost productivity and economic growth in the long-term.

"There is no time to waste... We cannot afford to have another decade where both are stagnant," Mr Danker added.

'No New Year cheer'

The government has said the country is already in recession. Global factors are partly to blame, with energy and food prices soaring this year due to the war in Ukraine and Covid.

But the UK also faces significant labour supply challenges due to it being more difficult for small businesses to trade with Europe or recruit workers due to Brexit.

There will be "no New Year cheer for the economy", the CBI added, with its latest forecast suggesting that business investment is set to be 9% below pre-pandemic levels by the end of 2024.

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